Govt Approves Rs19.5 Billion Grant for Utility Stores Employees Know Full Details

The federal government has officially announced that Utility Stores Services are closed across Pakistan. Along with this announcement, the government has approved a special grant of Rs19.5 billion to support employees who are directly affected by the decision.

The announcement was made in Islamabad by Federal Minister Tariq Fazal Chaudhry during a press conference, where officials from the Utility Stores Corporation were also present. While this decision marks the end of decades-long services, the government has promised to protect the rights of employees and vendors.

Govt Approves Rs19.5 Billion Grant for Utility Stores Employees Know Full Details

Why Utility Stores Services Closed — The Background

The Utility Stores Corporation was originally set up to provide daily-use items like flour, sugar, and ghee at affordable prices. Over the years, it helped millions of families purchase essential goods at reduced rates.

However, according to the government, the corporation was running into heavy financial losses. Every month, it was losing nearly Rs60 crore. To cover salaries and operations, the government had to give regular subsidies, which became unsustainable.

Therefore, after much discussion, the government decided that it was no longer possible to continue the services.

Utility Stores Services Closed — Rs19.5 Billion Grant for Employees

Although the services have been shut down, the government has allocated Rs19.5 billion for employees’ financial security. This grant will cover:

Payment of pending salaries
Support packages for employees of all categories
Benefits for both permanent and temporary staff

This package ensures that no employee will be left without financial help during this transition.

Who Will Benefit from the Package?

More than 11,000 employees were working with the Utility Stores Corporation, and all of them will now benefit from the government’s relief package.

In the past, only permanent staff received packages when such measures were introduced. But this time, the government has included contract workers and daily wagers as well. This is a major step because a large number of workers were unsure about their future after the closure.

Vendor Support — Small and Large Vendors

The decision also affects thousands of vendors who used to supply goods to Utility Stores. To protect them, the government has announced a Rs2 billion package for small vendors.

For large vendors, the government has promised to make payments later in phases, once the process for employee payments is completed.

Pending Salaries — Immediate Relief

Another important part of the package is the release of pending salaries for one-and-a-half months. Employees who had not received their wages due to financial constraints will now get their dues. This immediate relief will provide stability to families who depend on these salaries.

Utility Stores Services Closed — Summary Table

Here’s a simple breakdown of the government’s announcement:

Decision/Support	Details
Utility Stores Services	Officially closed nationwide
Employee Grant	Rs19.5 billion approved
Total Employees Affected	11,000+ (permanent, contract & daily wagers)
Pending Salaries	1.5 months to be paid immediately
Small Vendor Package	Rs2 billion approved
Large Vendor Payments	To be made later in phases
Monthly Losses of Corporation	Nearly Rs60 crore per month

Government’s Official Statement

Federal Minister Tariq Fazal Chaudhry said that while the closure was a difficult decision, it was unavoidable due to heavy losses. He emphasized that the government’s top priority is to protect employees and vendors.

He assured that the package was approved after consensus and that the process of payments will be transparent.

What Affected People Should Do Next

Employees and vendors are advised to stay connected with official Utility Stores Corporation announcements. Payment procedures and schedules will be shared by the authorities soon. Employees should also keep necessary documents (employment ID, CNIC, salary slips) ready for smooth disbursement.

Conclusion

Utility Stores Services Closed across Pakistan after years of losses.
Government approved a Rs19.5 billion grant to support more than 11,000 employees.
Pending 1.5 months’ salaries will be released immediately.
Rs2 billion package announced for small vendors; large vendors to be paid later.
Both permanent and temporary staff (contract/daily wagers) are included in the package.

This step shows that while the Utility Stores Corporation could not survive financially, the government is committed to protecting the people connected with it.

Govt Approves Rs19.5 Billion Grant for Utility Stores Employees Know Full Details

Why Utility Stores Services Closed — The Background