The Economic Coordination Committee (ECC) of the Cabinet chaired by the Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb approved a technical supplementary grant of Rs 30.216 billion to ensure the smooth closure of the Utility Stores Corporation of Pakistan (USC). The ECC decision covers severance payments compensation and outstanding dues to protect the welfare of USC employees during the winding up process.
The ECC directed the Ministry of Industries and Production to further rationalize the financial requirements for USC closure. The committee also decided that USC assets including properties will be disposed of within the current financial year so that sale proceeds partially meet closure liabilities. The Cabinet body stressed that the closure must be carried out in an orderly and transparent manner while safeguarding employee entitlements.
The approved package aims to address the long standing financial burden of USC on the public exchequer while cushioning the social impact of the closure. Officials stated that severance and compensation measures will provide immediate relief to affected workers and that recovery of proceeds from asset disposal will reduce net fiscal cost.
The ECC meeting was attended by Federal Minister for National Food Security and Research Rana Tanveer Hussain Federal Minister for Commerce Jam Kamal Khan Federal Minister for Power Sardar Awais Ahmad Khan Leghari attending virtually Special Assistant to Prime Minister for Industries and Production Haroon Akhtar Khan federal secretaries and senior officials from concerned ministries departments and regulatory institutions. The presence of senior officials reflected the inter ministerial coordination required for the USC Closure Funding Plan.
The committee has emphasized on the importance of transparent implementation and periodic monitoring of expenditure and sale of assets. The ECC required relevant ministries to report progress and to make sure that salaries paid to workers are promptly paid. The ruling is a milestone move in the handling of liabilities of USC and a safeguard of the rights of the workers.