Starting Monday, the process of disbursing compensation packages to employees of the Utility Stores Corporation has officially commenced. This significant development brings relief to thousands of workers who had been awaiting their dues following the corporation’s dissolution. The authorities have ensured that the compensation details have been uploaded onto the Accountant General Pakistan Revenues (AGPR) portal, streamlining the payment process for the 4,459 employees spread across the country.
The initial installment, which constitutes 40 percent of the total compensation amount, is being directly transferred into the bank accounts of the affected employees. This move marks the first phase of a structured plan to clear all outstanding payments, reflecting the government’s commitment to supporting the workforce that once served in the nation’s largest chain of subsidized stores.
To provide some context, the Utility Stores Corporation of Pakistan (USCP) was a state-owned enterprise that played a crucial role in the country’s retail sector. Established in 1971, the corporation was designed to offer essential commodities to the public at prices significantly lower than market rates, thanks to government subsidies. Over the decades, it grew into the largest chain-store network in Pakistan, operating an extensive network of 5,939 outlets nationwide before its closure in 2025.
The USCP was managed by a board of directors and led by a managing director who oversaw its operations. The corporation’s mandate was not only to provide affordable goods but also to ensure that these products met quality standards. In fact, public business organizations and citizens had the legal right to petition courts if they believed the items sold were substandard or adulterated, highlighting the regulatory oversight embedded in the system.
Originally, the Utility Stores Corporation began with just 20 outlets, which were acquired from the Staff Welfare Organization. Its primary mission was to offer price relief on food and beverages, particularly targeting low-income segments of society. The stores focused on supplying clean, graded, and hygienically safe food and non-food items, free from adulteration, thereby protecting vulnerable consumers from exploitation in the open market.
With the corporation now dissolved, the government’s efforts to compensate its former employees underscore the importance of addressing the welfare of those who contributed to this extensive public service network. As the compensation payments continue, it is expected that the remaining installments will follow in due course, providing financial support to thousands of workers who had dedicated years of service to the Utility Stores Corporation.
