Islamabad – Pakistan – In a surprising budgetary reprioritization, the government has redirected Rs15 billion originally earmarked for the sugar subsidy to fund the phased closure of the Utility Stores Corporation (USC). The Economic Coordination Committee (ECC) approved a Rs30 billion plan to facilitate the wind-down of USC operations, including asset sales and staff reductions.
Facing a lack of allocated funds for the shutdown, the Finance Division pushed for funding through subsidy diversion. The Ministry of Industries & Production has been instructed to manage financing by rationalizing existing allocations. Among the assets to be liquidated are USC properties—expected to generate substantial proceeds before mid-2026 to help cover closure costs.
This move highlights both the escalating financial strain of USC operations and growing pressure to restructure state-run entities in favour of fiscal stability.
This story has been reported by PakTribune. All rights reserved.