In a major restructuring effort, the federal government has approved a Voluntary Separation Scheme (VSS) for employees of the Utility Stores Corporation (USC), aiming to reduce financial burden and improve operational efficiency across its national retail network.
The decision, announced by officials from the Ministry of Industries and Production, will apply to over 9,000 employees, many of whom have been serving for decades under outdated structures and compensation plans. Under the new scheme, eligible staff will be offered financial packages based on years of service, grade, and tenure, allowing them to exit the organization voluntarily.
The move is part of a broader government initiative to revamp state-owned enterprises (SOEs) and make them financially sustainable. The USC has long struggled with losses due to mismanagement, overstaffing, and outdated inventory systems. The VSS is expected to save the government hundreds of millions in recurring costs while offering employees a dignified and incentivized exit.
Employees opting into the scheme will be entitled to lump sum payments, gratuity, encashment of leaves, and pension adjustments where applicable. The Ministry has assured that the scheme is purely voluntary and no employee will be forced to resign.
Critics, however, warn that the VSS should be followed by transparent recruitment practices and technological upgrades, or else USC’s core issues will persist. Labor unions have expressed mixed reactions—some view it as an opportunity for retirement with benefits, while others fear it’s a step toward privatization or downsizing without addressing systemic flaws.
The Utility Stores Corporation is Pakistan’s largest government-backed retail network, serving millions with subsidized essential goods. The success of the VSS will likely set the tone for similar reforms in other struggling SOEs.
Utility Stores voluntary separation scheme
USC restructuring, government employee scheme, public sector reform
