The federal government and PM Shehbaz Sharif has requested proposals for the dissolution of the Utility Stores Corporation.
The federal government has decided to shut down the Utility Stores Corporation. Prime Minister Shehbaz Sharif has also sought suggestions regarding the closure of the corporation, while the government has discontinued the 50 billion rupees subsidy for the Utility Stores.
The Prime Minister has asked for proposals within two weeks concerning the closure of the Utility Stores Corporation. Shehbaz Sharif has directed that instead of subsidies at Utility Stores, cash relief proposals for the poor should be prepared.
On the other hand, the Secretary of Industries and Production has confirmed the plan to shut down the Utility Stores and clarified that efforts are underway to transfer the employees of the Utility Stores to other departments.
During a meeting of the Senate Standing Committee on Industries and Production, Senator Saifullah Niazi inquired whether the government is planning to close down the Utility Stores. The Secretary of Industries and Production responded affirmatively, stating that the government is considering closing the Utility Stores.
He further explained that work is ongoing to relocate the employees of the Utility Stores to other departments, and the government intends to withdraw from unnecessary businesses. Providing relief through Utility Stores undermines the competitive environment.
It is worth noting that during a meeting chaired by the Prime Minister on August 16, the federal government decided to shut down 28 departments under five ministries as part of efforts to reduce administrative expenses and streamline state machinery.
The committee had briefed the Prime Minister, discussing reforms in five ministries, including Kashmir Affairs and Gilgit-Baltistan, States and Frontier Regions, Information Technology and Telecommunication, Industries and Production, and National Health Services.
According to a press release issued by the Prime Minister’s House, the meeting suggested merging the Ministry of Kashmir Affairs and Gilgit-Baltistan with the States and Frontier Regions, closing, privatizing, or transferring 28 departments under these five ministries to federal units. It was also recommended to strengthen 12 institutions within these ministries.
Prime Minister Shehbaz Sharif instructed the cabinet to send the proposals for approval and called for comprehensive planning and implementation. The Prime Minister emphasized that the goal of reforms in government institutions is to reduce the burden on the national treasury and improve services for the public.
He further stated that government institutions that fail to perform in public service and become a burden on the national treasury should either be completely shut down or measures for their privatization should be taken.
The Prime Minister expressed his intention to privately supervise the Small and Medium Enterprises Development Authority, aiming to promote business within the SME sector.
The reform committee suggested abolishing 150,000 vacant positions and gradually phasing out non-core outsourced tasks, such as cleaning and security posts from grades 1 to 16.
The committee also recommended imposing a ban on emergency recruitment and monitoring the cash balances of ministries by the Ministry of Finance.
