The knotted problem of utility stores corporation

In FY25’s budget, the allocation for utility stores corporation (USC) nearly doubled from the previous year. In the recent past, there have been different proposals to restructure the corporation to improve its finances or close 1,000 loss-making outlets nationwide. There are about 5,130 stores nationwide, according to media sources.

This month, the government decided to close it down since it has done little to justify the billions allocated to it. The steep hike in recent years is partly because of the galloping inflation that pushed up prices of everything, including basic grocery items. The government’s fiscal constraints and drive to divest unnecessary expenses have led to curtains for USC.

While the necessity of providing subsidised groceries to low-income Pakistanis is undeniable, there is only one outlet per about 50,000 individuals. Add to it the reports of corruption and mismanagement — in 2021, about 2,000 ‘ghost’ employees were pulling salaries while being unauthorised as USC workers.

Like the multitude of problems that plague Pakistan, this one too has no easy solution. Yes, the impoverished should have access to subsidised essentials, especially with Ramazan around the corner. However, the delivery through USC has been marred with corruption and mismanagement and created an added fiscal burden.

Published in Dawn, The Business and Finance Weekly, January 27th, 2025