VSS being readied: USC shutdown decision is final, NA panel told

ISLAMABAD: The Ministry of Industries and Production (MoI&P) on Thursday announced that the government has made a final decision to shut down Utility Stores Corporation (USC). However, a Voluntary Separation Scheme (VSS) is currently being prepared by a committee headed by Finance Minister Senator Muhammad Aurangzeb.

While testifying before the National Assembly Standing Committee on Industries and Production — chaired by Syed Hafeezuddin — Secretary for Industries and Production, Saif Anjum stated that the USC’s business model relied entirely on government subsidies. The government has been providing Rs 7.8 billion annually to keep the utility stores operational.

According to Anjum, USC lacks both the capital to purchase essential goods and the resources to pay its employees’ salaries.

The Committee strongly criticized the ministry’s decision, arguing that the closure of USC will leave thousands of regular, contractual, and daily-wage employees jobless, potentially leading to severe economic hardship for many.

Committee members, particularly those from Sindh, expressed concern that the government has failed to uphold promises made in Parliament and during prior Committee meetings. Several members insisted that contractual and daily-wage workers should also be included in the VSS so they may receive some financial support.

The Chairman of the Standing Committee emphasized that its recommendations must not be taken lightly. He announced plans to convene a special meeting on USC, in which the Finance Minister, who also chairs the VSS Committee, will be summoned.

Pakistan Steel Mills (PSM):

Regarding PSM, Secretary Anjum informed the Committee that Russian experts are conducting a feasibility study on the mill’s revival at no cost to Pakistan. He noted that the gas supply to PSM’s blast furnace was abruptly discontinued, causing a large accumulation of frozen iron ore.

The feasibility study will determine whether the government should remove the frozen iron ore—estimated to cost $400 million—or install a new blast furnace, which would cost around $1 billion. Anjum highlighted the importance of reviving PSM, pointing out that Pakistan imports steel products worth $3.5 billion annually.

He added that issues related to gas and water supply in the PSM residential colonies have been resolved with the support of the Chief Minister of Sindh.

Electric Vehicle Policy: Anjum also informed the Committee that the Federal Cabinet approved the Electric Vehicle Policy Standards and Regulations in its meeting on July 30, 2025. These regulations are expected to be presented to the National Assembly for further discussion.

Copyright Business Recorder, 2025