In anticipation of a major protest by the Utility Stores Corporation (USC) employees, the Islamabad administration has fortified the Red Zone with 97 freight containers and deployed a substantial police presence. The move comes as USC employees from across the country converge in the capital to demonstrate against the potential closure of their stores. Despite government reassurances, tensions remain high as the protest is set to take place outside Parliament House today.
A meticulously planned security strategy has been put in place, with containers blocking roads at 13 key locations. Among these are significant checkpoints like the ISI checkpoint, Marriott Hotel, and Serena traffic signal on Kashmir Highway. The authorities, determined to prevent any breach, have confiscated 92 containers, with the remaining already in their possession. The strong police presence and roadblocks reflect the administration’s commitment to maintaining order while allowing the employees to voice their grievances.
The Protest and its Implications
The protest by USC employees is a direct response to the government’s earlier consideration to shut down the Utility Stores Corporation, a move that would have left thousands of workers jobless. Malik Muhammad Azhar, Vice President of the All Pakistan Utility Stores Corporation Employees Union, has stated that over 12,000 employees are expected to gather in Islamabad. These workers, representing various provinces, are determined to oppose any decision that threatens their livelihood.
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The USC operates over 4,800 stores nationwide, providing essential commodities at subsidized rates. The potential closure of these stores has sparked widespread concern, not only among employees but also within the general public, who rely on USC for affordable basic necessities. The union has made it clear that the protests will continue until their demands are met, emphasizing the need for the government to pay the pending dues of Rs. 14 billion to sustain operations.
Government’s Response and Future Prospects
Minister for Industries and Production Rana Tanvir Hussain has dismissed rumors of the USC‘s closure, insisting that the government plans to restructure the organization instead. However, this assurance has done little to quell the fears of the employees, who argue that restructuring often leads to job cuts and instability. The USC is one of the few remaining state-owned enterprises that have managed to remain profitable, contributing Rs. 25 billion in taxes annually.
The employees are adamant that if the government honors its financial obligations, the USC can continue operating without further assistance. The organization’s leadership is actively engaging with government officials to find a resolution that secures the future of both the employees and the USC. The outcome of these discussions will have a significant impact on the thousands of families that depend on the USC for their livelihoods.
Historical Context and Broader Implications
The USC was established in 1971, starting with just 20 retail outlets acquired from the Staff Welfare Organization. Over the years, it has grown into a network of 4,800 stores, serving as a critical lifeline for low-income families across Pakistan. The government’s decision to privatize state-owned entities, including the USC, is part of a broader strategy aimed at reducing public sector debt. However, this has raised concerns about the social impact of such decisions, particularly in a country where poverty levels remain high.
The USC employees’ protest highlights the tension between economic reforms and social welfare. While privatization may be seen as a necessary step for economic stability, it also risks exacerbating inequality by removing essential services that millions of Pakistanis rely on. The USC’s potential closure is more than just a labor issue; it is a test of the government’s ability to balance fiscal responsibility with its duty to protect the most vulnerable members of society.