USC closure requires Rs29 billion to implement VSS for its employees

USC closure requires Rs29 billion to implement VSS for its employees

File photo

July, 19 2025

LAHORE (Web Desk): The Utility Store Corporation (USC) requested Rs29 billion from the Ministry of Finance to implement the Voluntary Separation Scheme (VSS) for its employees to shut down the state-run retail chain permanently.

The demand is part of the planned closure of the organization which is set to cease operations by July 31, 2025, due to sustained financial losses. The proposed VSS is intended to provide a severance package to the employees as they transition out of their roles.

According to official documents, the document stated that the corporation currently employs a total of 6,204 daily wage and temporary workers excluding permanent employees. The total workforce stands at 11,421. For 5,217 permanent employees, an amount of Rs22.84 billion will be required.

The ministry of the finance has objected to the inclusion of the daily wage and temporary employees in the packages and has instructed that the packages be revised. The revised packages will be presented to the Prime Minister Shehbaz Sharif next week.

According to sources, a committee headed by the secretary of the ministry of industries is preparing a revised voluntary Separation Scheme packages for Utility Store Corporation employees.