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Business Recorder
5 days ago
- Business
- Business Recorder
USC to be shut down by 31st, employees offered VSS
ISLAMABAD: The government has decided to close all operations of Utility Stores Corporation (USC) by 31stJuly 2025, and offer a financially viable Voluntary Separation Scheme (VSS) for its employees. A high-level meeting of the committee constituted by the prime minister to oversee the closure and privatisation of the USC was held on Wednesday with the Federal Minister for Finance and Revenue, Muhammad Aurangzeb, in the chair. The committee has been tasked with ensuring a smooth and transparent closure process, formulating a suitable VSS for USC employees, and recommending a structured timeline for privatisation. Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, secretary Establishment Division, secretary Finance Division, secretary Industries and Production Division, managing director of the USC and senior officers from the Finance and Revenue Divisions attended the meeting Wednesday. The committee led by the finance minister reviewed the progress made in the light of the tasks assigned to it and held detailed deliberations on the way forward. It was reaffirmed that, in accordance with the government's directives, all operations of USC will be closed by 31st July 2025. The committee discussed at length the formulation of a fair and financially viable VSS for the USC employees. During the course of the meeting, the members examined various dimensions of the proposed VSS, including its projected size, potential fiscal impact, and legal and operational implications associated with its structure and rollout. The committee recommended that the Privatization Commission be consulted regarding the optimal structuring and feasibility of privatisation or alternatively asset sales linked with the USC operations. To facilitate a comprehensive analysis, the chair constituted a sub-committee headed by the secretary Establishment Division. The committee will include representatives from the Finance Division and the Industries and Production Division to examine the legal and operational aspects, contours, size, and structure of the proposed VSS and submit its report to the main committee by the end of the week. This will enable the committee to consolidate its findings and finalise its report and recommendations to be submitted to the prime minister in line with the terms of reference. According to the USC restructuring plan recently shared in the Senate Standing Committee on Industries and Production, the closure of 1,925 loss-making Utility Stores outlets countrywide has resulted in saving of Rs1.7 billion. The government has shut down 1,925 loss-making Utility Stores outlets countrywide while sacking 4,060 employees out of a total of 11,614. According to officials, in case, the government failed to privatise the USC, annually Rs7 billion will be required to pay the salaries of the employees. At present, the privatisation process had been stopped because of a lack of its audit for two years. 'The privatisation will take place after the audit is complete,' the officials said, adding that 5,000 permanent employees would be sent to the surplus pool, while 2,554 employees still on contracts and on daily wage basis would be laid off. There were 3,742 Utility Stores outlets across the country, out of which, the government has shut down 1,925 loss-making stores. USC's monthly losses had been reduced to Rs220 million. It was also disclosed that the USC will not have sufficient funds to pay salaries to its 5,000 employees beyond next month, due to the closure of a significant number of its outlets. According to officials the USC's outstanding payment stand at Rs25 billion. The management has decided to offer golden handshake scheme to 25 percent of the USC employees, otherwise, Rs2.7 billion annually will be spent on the salaries of these employees. Copyright Business Recorder, 2025
Express Tribune
11-07-2025
- Politics
- Express Tribune
MPs decry 'unlivable' Parliament Lodges
Minister of State for Interior, Talal Chaudhry, found himself in an uncomfortable and difficult position on Friday as several senators expressed strong frustration over the deteriorating condition of the Parliament Lodges during a meeting of the Senate House Committee. Lawmakers, visibly upset, raised multiple complaints with the minister, criticising the appalling state of infrastructure, lack of maintenance, and overall mismanagement at the lodges. Chaudhry too voiced his concerns, saying, "I'm personally troubled by a female parliamentarian living upstairs who has installed water taps in the stairwell. Someone, please have those taps removed." It was disclosed during the meeting that not even a single light bulb has been replaced in two years, while a former female senator left Parliament Lodges without paying Rs1.7 million in outstanding electricity and gas bills. The Senate House Committee meeting was chaired by Deputy Chairman Senate Syedaal Khan Nasar. During the session, Minister Talal Chaudhry responded to senators' questions. Capital Development Authority (CDA) officials briefed the committee, stating they had received 48 requests from parliamentarians for repairs, AC installations, and other work at the lodges, claiming work is underway and being carried out in line with PPRA rules. They added that 12-13 suites have been made habitable. However, Senator Kamil Ali Agha rejected the CDA's presentation, calling it "completely false." He alleged that no actual work is being done. Chairman Nasir said that action would be taken against those who haven't completed work in the past 16 months. Senator Poonjo Mal Bheel too complained that the sanitation system in Parliament Lodges is practically nonexistent, with visible filth everywhere. While the CDA DG is polite, he said, their performance is "zero." Minister Talal Chaudhry added that the Interior Minister has already suggested to the National Assembly Speaker that if CDA cannot do the job, the responsibility should be handed over to another agency. Work on 104 lodges is about to begin, and if funds are released, it will be completed in six months. "Contractors haven't been paid in two years. Following the Speaker's instructions, all senators' lodges will be repaired simultaneously. The tender for 104 lodges will be issued within two days, and lodges must be vacated for four months to carry out the work," he said. Senator Khalil Tahir Sindhu raised another concern, stating that his lodge was given to a fellow female senator at the request of the Deputy Chairman. She vacated the premises overnight without paying utility bills worth Rs1.7m — Rs1.3m for electricity and Rs470,000 for gas. "I can't pay this bill," he added. Chairman Nasir responded that she is the daughter of a former Deputy Chairman of the Senate and that he personally asked her to clear the dues.
Business Recorder
04-07-2025
- Business
- Business Recorder
Beyond tariff cut: Millions more move to protected slabs
Nepra has approved a reduction of Rs1.15 per unit in the base tariff for all non-lifeline consumers. The cut implies a base tariff relief of 2 to 5 percent for non-protected consumers, and 8 to 10 percent for those in the protected category. Negative base tariff adjustments are uncommon, offering a rare break after an extended spell of steep increases. The reduction in base tariff is not the main story. What ultimately matters is the effective end-user tariff — where a mix of adjustments, surcharges, and taxes often carries more weight, particularly when the base tariff revision is modest, as is the case this time. Significant confusion persists around the continuation of the previously announced Rs7.4 per unit relief into FY26. The issue was raised during the tariff hearing, but the Ministry of Energy's response did little to resolve the uncertainty. The Ministry stated that the 'average applicable consumer tariff in July 2025 would be lower by around seven rupees as compared to July 2024' — a phrasing that, while seemingly affirmative, raises more questions than it answers, especially in the absence of clarity on the underlying assumptions and whether the relief refers to gross billing impact or base tariff trajectory alone. It is important to recall that much of the previous quarter's relief was temporary by design, intended to lapse by June 2025. The only component explicitly extended into FY26 was the Rs182 billion relief — equivalent to Rs1.7 per unit — financed through additional Petroleum Levy collections. In its communication with the IMF, the government had clearly stated that this limited subsidy for all non-lifeline consumers would remain in place only until June 30, 2026. Combining the Rs1.15 per unit base tariff reduction with the Rs1.7 per unit Petroleum Levy–financed subsidy brings the total relief for July 2025 to Rs2.8 per unit. However, the most significant contributor is the Fuel Charge Adjustment (FCA), which has dropped from Rs3.2 per unit in July 2024 to around 10 paisas — a major swing. Additionally, quarterly tariff adjustments (QTA) offer further relief of Rs2.5 per unit, as the current QTA is a negative Rs1.55 per unit, compared to a positive Rs0.93 per unit last July. It's worth recalling that effective electricity tariffs for all consumer slabs had peaked in July 2024. Despite the base tariff cut, effective tariffs are set to increase by Re1 per unit on a month-on-month basis — primarily due to the quarterly adjustment becoming less negative, narrowing from Rs3.45 to Rs1.55 per unit. With this periodic negative adjustment scheduled to lapse after July 2025, the year-on-year relief in effective tariffs will also diminish as FY26 progresses. The more fundamental shift is unfolding in consumption patterns. An estimated 3.5 million additional consumers are expected to move into the protected category in FY26 compared to FY25. Today, 60 percent of all domestic consumers fall under protected or lifeline slabs — up from 50 percent just three years ago. Their share in total domestic consumption has risen from 22 percent in FY22 to 32 percent now. In contrast, consumption in the unprotected category — primarily middle and lower-middle income households — has declined sharply. The 301–700 unit slab has seen a drop of 5 billion units over three years, with its share in domestic consumption falling from 26 to just 19 percent. Despite lower tariffs compared to last year, the shift appears structural. Erosion in purchasing power has pushed millions into protected categories, shielding them from steep tariffs — but at the cost of mounting pressure on those left behind to cross-subsidize. The shift also mirrors the acceleration of solar adoption. In many remote areas, the grid is becoming increasingly redundant. Solar uptake is now evident across commercial, agricultural, and industrial segments as well. Meanwhile, uncertainty around net metering policy continues. Without clarity, the burden will keep growing on mid-tier unprotected consumers still tied to the grid.
Express Tribune
24-06-2025
- Business
- Express Tribune
'People's expectations fulfilled'
City Mayor Barrister Murtaza Wahab on Tuesday presented the Karachi Metropolitan Corporation (KMC) budget for the fiscal year 2025-26 in the City Council. Deputy Mayor Karachi Salman Abdullah Murad and Municipal Commissioner S.M. Afzal Zaidi were also present. During his budget speech, the mayor stated that the decisions made over the past two years for the improvement, development, infrastructure restoration, and removal of encroachment in Karachi - along with the renovation of the city's historical buildings - are now producing visible results. He emphasised that difficult decisions were made to serve people in better ways. Parliamentary leaders, opposition leaders, and council members also offered suggestions and shared their views on the budget. The 2025-26 budget includes development projects selected in consultation with honorable council members, reflecting the commitment to work for the broader and long-term interests of the city. He said, every effort has been made to fulfill the expectations people. Presenting the highlights of the budget the mayor said that KMC employee salaries have been shifted to the World Bank's SAP system. Retired employees' pensions will also be integrated into SAP next, ensuring timely payments and tamper-proof records. He said, Municipal Utility Charges & Taxes (MUCT) collection through K-Electric bills has resumed, with Rs1.7 billion collected so far this year. Next year, up to Rs3.5 billion is expected to be collected, which will aid infrastructure improvement and KMC's financial self-sufficiency. Development without discrimination was carried out in all seven districts, including, A 1.5 km road connecting Lyari to the port and shipyard (Rs56 million), overlay and patchwork on both tracks of Hub River Road (180,000 ft), repairs and carpeting of Malir River Bridge and adjacent road from Anwar Baloch Hotel to Murghi Khana Bus Stop. Construction of a 1.4km overhead bridge on Korangi Causeway. He said Long-pending dues of retired and deceased KMC and DMC employees were addressed. KMC, through its own resources, paid Rs600 million and cleared all dues up to June 2018. Through investment, Rs576 million was earned and a total of Rs1.3 billion was disbursed. He said KMC is the first municipal body in Pakistan to begin converting its buildings to solar energy. Rs220.2 million has been allocated for this in the upcoming fiscal year, with plans to solarise markets, parks, and streetlights. He said renovation of Denso Hall, Khaliq Dina Hall, KMC Building, and Frere Hall has been completed. Next year, six more historical structures - including Empress Market, Muhammad Ali Hothi Market, Machhi Miani Market, and Lea Market - will be restored to their original form.
Express Tribune
18-06-2025
- Business
- Express Tribune
Funds allocated for NA-53 projects
The government has approved significant funding for the completion of development projects initiated during the Pakistan Tehreek-e-Insaf (PTI) era, including hospitals and infrastructure schemes in NA-53, said Member of the National Assembly and Chairman District Coordination Committee Rawalpindi, Engineer Qamarul Islam Raja. Sharing details of the approved projects for the fiscal year 2025-26, the MNA said that Rs210 million have been allocated for Jorian Hospital and Rs110 million for Potohar Town Rawat Hospital, covering all remaining funds needed to complete both medical facilities. He further announced that Rs450 million have been sanctioned for completing the remaining portion of Adiala Road from Khawaja Corporation to Gorakhpur, while Rs2.3 billion have been approved for the construction of a dual carriageway from Gorakhpur to Khasala Khurd. To improve connectivity in the region, an additional Rs1.7 billion have been approved for a new underpass at Tulsa Morr on Adiala Road, following the Rs3.5 billion Khawaja Corporation Flyover. In a revival of water infrastructure projects, the Rs1.8 billion Mujahid Dam project has also received approval, following the earlier Mohata Dam initiative. Raja said efforts are underway to ensure additional funds are allocated within the current fiscal year to enable the dam's completion in FY 2026. A sum of Rs20 million has been approved for the construction of the Chora Sharif to Malukal Road. Similarly, Rs150 million have been allocated for the Dhok Budhal to Sukho Road, which will provide a direct connection between Rawat and Chakwal Road. To ensure there are no delays after the completion of Daducha Dam, Rs10 million have been set aside for the design and paperwork of the water supply system, enabling its immediate implementation. The MNA further stated that a total of Rs60 million has been allocated for the water supply schemes in Mohri Ghazan, Lakhan, and Dhamial. An amount of Rs30 million has been set aside for the development of the Kulyan HameedMalukal Road. Additionally, Rs70 million have been approved for the revival of the Dhok Budhal Water Supply Scheme, as well as for street construction and drainage work. Approximately Rs28 million will be used for the rehabilitation of the Malukal Water Supply Scheme and associated drainage infrastructure. For street construction and drainage in Mauza Jorian, Union Council Dhamial, Rs15 million have been sanctioned. Moreover, the remaining Rs9 billion required for the Rawalpindi Ring Road project will be released immediately, said the MNA.
