Government sets plan to Shut Down Utility Stores
ISLAMABAD: The Secretary of the Ministry of Industries and Production has confirmed the government's plan to shut down Utility Stores as part of a 'rightsizing' initiative.
During a meeting of the Senate Standing Committee on Industries and Production, the Secretary revealed that the recommendations of a rightsizing committee would be forwarded to the cabinet for final approval.
The Ministry is also working on a comprehensive action plan to address the concerns of the Utility Stores' employees. The government is considering privatization as a solution to the financial challenges faced by the organization.
The committee also received a briefing on the country's auto policy. Officials highlighted the growing demand for warehousing facilities in Pakistan and informed the committee that a summary has been submitted to the federal cabinet to classify warehousing as an industry. The Economic Coordination Committee (ECC) has already approved this proposal.
The committee was informed that Pakistan produces less than 1 million cars annually. To boost the electric vehicle industry, 45 licenses have been issued for the production of electric motorcycles and rickshaws. Currently, 13 car brands operate in the country, with a production capacity of 5 million cars. The automotive sector contributed Rs. 300 billion in taxes in the previous fiscal year.
Senator Salim Mandviwalla raised concerns about the quality of locally produced vehicles, stating that they do not meet international standards and cannot be exported. Officials responded by stating that tractors and rickshaws are being exported.
The committee chairman, Senator Aun Abbas Bappi, inquired about allegations of under-invoicing in the import of MG cars. Salim Mandviwalla clarified that the matter had been resolved by the courts.
Officials admitted that the 4% export target for cars was not achieved this year due to companies failing to secure export orders and obtaining stay orders from the courts. The government has not offered any incentives for exports.
In an interview with local media, the General Manager of Utility Stores, Inayatullah Dolah, confirmed that the government is considering shutting down the stores as part of a rightsizing exercise. He stated that a detailed plan would be developed to address the matter, including the future of the employees.
