Pakistani Govt Plans to Close 1,000 Loss-Making Utility Stores Nationwide to Cut Costs

The Pakistani government is considering the closure of approximately 1,000 utility stores nationwide, a significant move that will affect millions of low-income families who rely on these outlets for essential, subsidized goods. The closure is part of the government’s broader rightsizing initiative, which aims to streamline operations and reduce costs across the public sector. This policy shift follows the halting of a substantial subsidy worth Rs50 billion, which had previously provided financial relief to 26 million households​.

The government’s plan to shut down these utility stores comes at a time when financial constraints have led to the redirection of funds meant for subsidies towards addressing urgent energy issues, particularly to alleviate the burden of electricity bills​. As part of the rightsizing initiative, the Ministry of Industry and Production is developing an action plan for the closures, which will include a support package for the affected employees​.

This move has sparked concerns regarding the loss of access to affordable goods for vulnerable communities. Essential items such as flour, rice, sugar, and pulses, which were previously sold at discounted rates through these utility stores, will now be available at regular market prices, increasing the financial strain on already struggling households​.

As the government finalizes its plans, discussions are ongoing about how to mitigate the adverse effects of this decision, particularly on low-income families who depend on these stores for basic necessities.