IMF has suggested that Pakistan reduce the number of employees working at Utility Stores Corporation by June 30, as part of its efforts to make government organizations more efficient.
So far, about 2,237 workers who were hired on a daily-wage basis have already lost their jobs. Now, the government is also planning to end the contracts of another 2,800 employees who fall under grades 1 to 13.
Officials also shared that nearly 1,000 Utility Stores that are not doing well financially will be shut down by the end of this financial year. Employees who are in grades 14 and above may be shifted to a surplus pool, which means they will no longer have a regular role and could be moved or retired. Many of the stores that remain open may also be handed over to private companies.
This major restructuring is happening after the government gave a Rs. 38 billion subsidy to Utility Stores last year. Although Rs. 60 billion was planned for this year, the funds have not been released yet.
The IMF is keeping a close watch on these changes. On May 9, the IMF board will meet to decide whether to release $1.1 billion (around PKR 305 billion) in financial support to Pakistan. This money is important for the country’s economy, which is facing serious challenges.
The government hopes that these steps will improve the efficiency of Utility Stores and help save money. However, the job cuts and store closures are expected to affect many workers and families. This is part of a larger plan to reduce unnecessary spending and make state-run companies more financially stable.
