USC closure

THE PML-N government seems to have finally firmed up its mind on the future of the Utility Stores. The cabinet has formed a committee led by the industries and production minister to frame a ‘comprehensive’ strategy in the next seven days to ‘promptly’ shut down the loss-making Utility Stores Corporation, and absorb its employees in the federal surplus pool or post them against vacancies in other departments. The idea is to eventually sell the assets and properties owned by the USC across the nation as part of the plan to cut wasteful public expenditure. The corporation is one of the many white elephants the government has been struggling to save from extinction in the name of providing relief to the low-income segments of the urban populace at the expense of taxpayers. This was in spite of the Utility Stores run by the 53-year old USC having lost their utility years ago, with rapid urbanisation and population growth making it impossible for the authorities to extend the network of subsidised groceries to the targeted communities. Mismanagement and corruption to the tune of billions of rupees plaguing the corporation reinforces the case for its privatisation.

The strong case for the corporation’s closure notwithstanding, the government has the responsibility to find an effective mechanism to help low-income households battered by years of soaring costs of food, healthcare, education, housing and transport, and stagnating wages. With Ramazan just around the corner and the prices of food being gradually jacked up by traders, the urgency of finding a way to ensure provision of essential kitchen items to this segment of the population cannot be overstated. That said, the provincial governments have now a bigger, rather central role to play in providing economic relief to citizens since the passage of the 18th Amendment. It, however, is sad to note that in spite of spending billions on food subsidies and Ramazan bazaars every year, no province has been able to evolve a durable mechanism to support the low-income, inflation-stricken households. This calls for devising an effective framework wherein the authorities can ensure provision of essentials for the urban population at below-market rates while ensuring the quality and minimum burden on public finances. The Punjab government’s ‘model bazaars’ project in Lahore and other cities is one such example.

Published in Dawn, January 24th, 2025

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