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Secretary of Ministry of Industry and Production Saif Anjum has confirmed that the federal authorities is contemplating to close down utility shops throughout the nation.
“The authorities needs to get out from pointless companies,” the secretary stated whereas confirming the event throughout a gathering of Senate Standing Committee on Industry and Production on Friday.
Responding to Senator Saifullah Niazi’s question, Saif Anjum stated that work was underway to switch the staff of the utility shops to different departments.
He added that offering subsidy to the utility shops was detrimental to competitors in market.
Meanwhile, the utility shops administration stated they got a two-week deadline to wrap up points with corporations whereas the Rs50 billion subsidy, which beforehand supplied important reduction to round 26 million deserving households, has been halted.
The administration additional stated over 11,000 staff, which together with 6,000 everlasting workers, are nervous over the potential closure.
Speaking to Geo News, Atif Shah — General Secretary of All Pakistan Workers Alliance — stated that the Utility Stores Corporation (USC) wasn’t a burden on nationwide exchequer.
“The authorities collects Rs120 billion in taxes yearly from corporations in type of groceries sale,” he stated, noting that Rs25 billion was being paid by USC which in accordance with him makes 18% of the whole quantity.
Furthermore, Shah stated they do not take funds from the federal government and salaries of all staff are “self-generated”. He claimed that the federal government owes Rs20 billion to the company.
Meanwhile, the USC administration has determined to hunt assist from parliament with sources claiming that they might attain out to National Assembly and Senate’s Standing Committees on Industries and Production.
The standing committees can be apprised of the impacts of utility shops closure, sources stated, including that they might be requested to take up the problem in parliament.
The transfer would severely affect thousands and thousands of low-income households who’ve lengthy relied on discounted items, the sources added.
The authorities’s determination additionally prompted protests as utility tales staff have staged a protest outdoors their regional workplace at Scheme Mor in Lahore.
The protesters, carrying placards and chanting slogans, demanded the federal government revert its determination.
