Govt closes 446 utility stores following subsidy withdrawal

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Over 500 more utility stores may face closure countrywide

2024-12-02T16:17:00+05:00 News Desk

The federal government has taken a major step by shutting down 446 utility stores nationwide, with plans under consideration to close over 500 more, 24NewsHD TV Channel reported on Monday.

According to sources, the closures have targeted loss-making utility stores, particularly in rural areas, and no employees will lose their jobs as a result. 

"Only those stores with low revenue and high losses were closed," sources said.

Most of the affected outlets are in rural areas, where utility stores were heavily reliant on government subsidies. 

The federal government had already ended subsidies on essential items such as sugar, flour, and cooking oil in August this year.

Previously, the government provided subsidies on five basic commodities, which were seen as lifelines for low-income households. 

However, financial challenges have prompted this restructuring, focusing on curbing losses rather than workforce downsizing.

Reporter: Waqas Azeem

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