A senate committee was informed by Industry and Production Ministry Secretary Saif Anjum that the federal government has chosen to close utility stores throughout Pakistan as a result of budgetary constraints. Saif Anjum gave a briefing on the decision to the Senate Standing Committee and made recommendations to the panel about the closure of utility retailers. Closing utility stores and other businesses is one of the recommendations made by the rightsizing committee to cut costs.
The federal government reportedly lacked the funding necessary to run the stores, which is why it decided to close them. The committee was advised that the government needs to cut spending because it is having financial problems. The closure plan will be submitted to the cabinet for final approval after being approved by the cabinet secretary.
A schedule for the nationwide closure of utility retailers will be devised after approval. He informed the Senate panel that the government will accept the liquidation of additional entities, which is another proposal from the rightsizing committee. The government’s move to close the utility store is a component of its efforts to cut costs and deal with its budgetary constraints.
The Pakistani government has already “okayed” a five-year privatization initiative. The sources said that the five-year privatization initiative will be finished in three parts and that the decision was made by the federal cabinet during a meeting that was conducted here in Islamabad.
Phase one of the privatization process would involve the following companies: Faisalabad Electric Supply Company, Islamabad Electric Supply Company, Gujranwala Electric Supply Company, House Building Finance Corporation (HBFC), and Pakistan International Airlines (PIA).
The sources claimed that subsequently, Pakistan Reinsurance Company, State Life Insurance Corporation, Utility Stores Corporation, MEPCO, PESCO, HESCO, SEPCO, HESCO, and LESCO will all be privatized.
