Pakistan to close national chain of subsidized retail stores amid privatization push

Pakistan to close national chain of subsidized retail stores amid privatization push
In this file photo, taken on March 16, 2024, people stand in que outside at the Utility Store retail outlet in Multan. (APP/File)
Short Url
Updated 6 min 49 sec ago

Pakistan to close national chain of subsidized retail stores amid privatization push

Pakistan to close national chain of subsidized retail stores amid privatization push
  • Government pushes ahead with shut down of decades-old Utility Stores Corporation by end of July
  • Voluntary Separation Scheme under discussion as committee reviews financial and legal implications

ISLAMABAD: Pakistan will shut down the state-owned Utility Stores Corporation (USC) by July 31 as part of a broader government effort to restructure and privatize loss-making public sector entities, according to a statement from the finance ministry carried by state broadcaster Radio Pakistan on Wednesday.

The decision follows years of declining performance, mismanagement allegations, and heavy financial losses at the USC, a nationwide retail chain originally established in 1971 to provide essential commodities at subsidized prices to low-income households. The stores were once a key instrument in the government’s food security and price control policies but have faced mounting criticism over inefficiency, politicized staffing and weak oversight.

A high-level committee formed by Prime Minister Shehbaz Sharif to oversee the closure and privatization of the USC met on Wednesday in Islamabad, with Finance Minister Muhammad Aurangzeb chairing the session.

The committee is responsible for ensuring a transparent shutdown process, designing a fair Voluntary Separation Scheme (VSS) for USC employees and recommending a timeline for privatization or asset disposal.

“All operations of Utility Stores Corporation will be closed by 31st of this month in accordance with the government's directives,” the Radio Pakistan report said.

The committee “discussed at length the formulation of a fair and financially viable Voluntary Separation Scheme for the Utility Stores employees” and examined various aspects including its potential size, fiscal impact, and legal implications.

To support the analysis, a sub-committee led by the secretary of the Establishment Division has been formed and will submit recommendations on the structure and feasibility of the VSS by the end of the week.

The committee also advised that the government’s Privatization Commission be consulted on whether the USC's assets should be sold off or restructured for privatization.

The closure of the USC marks a significant step in Pakistan’s ongoing efforts to reduce the burden of state-owned enterprises on the national budget in line with reforms encouraged by the International Monetary Fund. Over the years, several audits and parliamentary reviews have pointed to chronic inefficiencies at the USC, including procurement irregularities and an inability to meet its mandate effectively in remote and underserved areas.


Pakistan military officer killed in clash with India-linked militants in Balochistan — army

Pakistan military officer killed in clash with India-linked militants in Balochistan — army
Updated 34 sec ago

Pakistan military officer killed in clash with India-linked militants in Balochistan — army

Pakistan military officer killed in clash with India-linked militants in Balochistan — army
  • Army says three militants killed in intelligence-based operation in Awaran district
  • Accuses India of sponsoring terrorism inside Pakistan, vows to continue operations

ISLAMABAD: A Pakistani army officer was killed during a clash with militants in the southwestern province of Balochistan on Tuesday, the military said, saying the assailants were Indian proxies operating inside Pakistan.

The fighting took place in Awaran district during an intelligence-based operation targeting suspected members of “Fitna al Hindustan,” a term the Pakistani military uses for militants it says are backed by India. The region, part of Pakistan’s restive Balochistan province, has long experienced separatist and insurgent violence, and Islamabad has frequently alleged Indian involvement in destabilizing activities there, a charge New Delhi has repeatedly denied.

According to the Pakistani military’s media wing, the Inter-Services Public Relations (ISPR), troops engaged the suspected militants at their hideout and killed three.

“During the conduct of operation, own troops effectively engaged the terrorist location and resultantly, three Indian sponsored terrorists were sent to hell,” ISPR said in a statement.

The military said Major Syed Rabnawaz Tariq, 34, was killed in the firefight while leading the operation. He was a resident of Muzaffarabad in Pakistan-administered Kashmir.

“Major Syed Rabnawaz Tariq … a brave officer who was leading his troops from the front, fought gallantly and paid the ultimate sacrifice,” the statement said.

A sanitization operation was underway following the clash to clear the area of any remaining militants, the military said, adding that such actions were part of Pakistan’s broader effort to eliminate what it described as “Indian Sponsored Terrorism” within its borders.

“The security forces of Pakistan are determined to wipe out the menace of Indian Sponsored Terrorism from the country, and such sacrifices of our brave men further strengthen our resolve,” the statement added.

The incident follows a series of recent accusations and military tensions between the nuclear-armed neighbors, including most recently when they exchanged in a four-day long air war in May. They have in the past fought multiple wars and regularly trade blame over unrest in disputed Kashmir and border regions.


Three killed, 12 injured as gunmen target passenger bus in southwestern Pakistan

Three killed, 12 injured as gunmen target passenger bus in southwestern Pakistan
Updated 16 July 2025

Three killed, 12 injured as gunmen target passenger bus in southwestern Pakistan

Three killed, 12 injured as gunmen target passenger bus in southwestern Pakistan
  • Armed men shot indiscriminately at bus traveling from Karachi to Quetta at N-25 highway, say police
  • Gunmen last week abducted, killed nine people after stopping two passenger buses in Balochistan

QUETTA: Three people were killed while 12 others were injured in Pakistan’s southwestern Kalat district on Wednesday, police and an official confirmed, after unidentified men opened fire on a passenger bus headed toward Quetta.

Kalat Station House Office (SHO) Habibullah Baloch said unidentified armed men shot indiscriminately at a passenger bus from Karachi headed toward Quetta on Wednesday. The attack took place near Nimragh Cross in Kalat district, located on the N-25 highway connecting Balochistan to the southern port city of Karachi.

“Three passengers, residents of Karachi, were killed in the attack and 12 others were wounded,” Baloch told Arab News, adding that the injured were shifted to the District Hospital Kalat for treatment.

The police official said the attackers did not stop the bus to check the National Identity Cards (NICs) of the passengers before firing at them, adding that the gunmen “sprayed” the vehicle with bullets.

He said dozens of passengers were traveling in the bus, adding that most of them were residents of Karachi.

Balochistan government spokesperson Shahid Rind condemned the attack in a statement.

“The security forces have surrounded the area and a hunt for the attackers is underway,” Rind said.

The latest attack has taken place after gunmen abducted and killed nine people last week when they stopped two passenger buses on a highway in Balochistan’s Zhob and Loralai districts. Those buses were traveling from Quetta to the eastern Punjab province.

Balochistan, Pakistan’s largest but most impoverished province, has been the site of a long-running insurgency that has intensified in recent months, with separatist militants attacking security forces, government officials and installations and people from other provinces, particularly Punjab, the country’s most populous and prosperous province and a major recruitment base for the military.

The Baloch Liberation Army (BLA) is the strongest of a number of insurgent groups operating in the mineral-rich region bordering Afghanistan and Iran. The group accuses the central government of stealing their resources to fund development in Punjab and other parts of the country. The federal government denies the allegations and says it is working for the uplift of local communities in Balochistan, where China has been building a deep-sea port as part of its Belt and Road Initiative.

Pakistan accuses India of backing separatists in Balochistan as well as religiously motivated militant groups, like the Pakistani Taliban, in its northwestern Khyber Pakhtunkhwa province. New Delhi denies the allegations.

Balochistan has seen a rise in militant attacks since last year. Last August, nearly two dozen passengers were killed after BLA militants forcibly removed them from Punjab-bound buses in a string of coordinated attacks in Balochistan. Another seven Punjabi commuters were offboarded from buses and killed in Balochistan’s Barkhan district in February this year.

In March, BLA separatists hijacked a train that carried hundreds of passengers near Balochistan’s Bolan Pass, which resulted in the deaths of 23 soldiers, three railway employees and five passengers. At least 33 insurgents were also killed.


Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants

Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants
Updated 53 min 30 sec ago

Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants

Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants
  • New transmission charges, which HUBCO says were not originally included, have pushed investors to seek extended guarantees
  • Coal-fired power is crucial amid rising use of solar power, whose variability could potentially cause blackouts if mismanaged

KARACHI: Pakistan’s largest independent power producer Hub Power (HUBCO) said on Wednesday it was seeking an extension to $51 million in bank guarantees to protect its coal-fired power plants, a crucial source of stable power amid Pakistan’s rising use of solar.

The guarantees, previously short-term, would now stay in place until 2034 to cover future loan repayments and potential penalties, the company said in a notice to the country’s stock exchange.

New government-imposed transmission charges, which HUBCO is contesting and says were not included in its original contracts, have pushed investors to seek extended guarantees. The cost of borrowing to provide these guarantees would remain below the expected returns from the projects, it said.

“The extended guarantee will cover any fines or funding gaps that may arise,” HUBCO said in a notice to the country’s stock exchange, adding that the company has invested about $131 million in the projects so far.

The South Asian nation has faced chronic electricity shortages and challenges to grid stability because of rising solar power use, fuel import constraints due to a foreign exchange crisis and a debt-burdened electricity sector.

Stable coal-fired power supply is crucial amid rising use of solar power, whose variability could potentially cause blackouts if mismanaged.

HUBCO will hold an extraordinary general meeting in August to seek shareholder approval for the plan for its two 330 megawatt (MW) plants operating on locally mined coal “to ensure the plants’ continued operation,” it said.

The plants’ problems stem from broader challenges faced by Pakistan’s power sector. Pakistan last year authorized an early termination of a power supply deal running to March 2027 as a part of an IMF mandate to cut energy debt.


Pakistan to send Islamabad Police officers to Beijing for AI, modern policing training 

Pakistan to send Islamabad Police officers to Beijing for AI, modern policing training 
Updated 16 July 2025

Pakistan to send Islamabad Police officers to Beijing for AI, modern policing training 

Pakistan to send Islamabad Police officers to Beijing for AI, modern policing training 
  • Pakistan undertakes efforts to improve policing methods amid rising militancy in country
  • Interior minister accepts Beijing Police’s offer to provide anti-riot training to Islamabad police

ISLAMABAD: Pakistan’s interior ministry announced on Wednesday that the government would send Islamabad Police officers to Beijing so that they can receive training in artificial intelligence and modern policing methods. 

Pakistan has recently undertaken measures to enhance its policing methods, especially as it faces surging militant attacks in its northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces. These efforts include digitizing police records, hiring more women police officers and releasing public awareness videos on social media platforms. 

Pakistan’s Interior Minister Mohsin Naqvi met Beijing Police Department’s Deputy Director General Gao Jianxin in Islamabad. The two sides discussed collaboration between the police forces of Islamabad and Beijing, the interior ministry said.

“During the meeting, it was decided that officers of Islamabad police will be sent to Beijing for training in modern policing and advanced technologies,” the ministry said in a statement.

“These officers will participate in various training courses conducted by the Beijing Police Department. They will also receive special training in the use of artificial intelligence to further improve the policing system,” it added. 

The minister said Pakistan would benefit from the “highly efficient and technologically advanced” Beijing police force, adding that the use of modern technology was essential for public safety and crime prevention.

Naqvi also highlighted the importance of timely information sharing to tackle militancy, crime, drug trafficking and human smuggling, the ministry said.

He accepted the Beijing Police’s offer to provide anti-riot training to the Islamabad police, the statement said.


Pakistan navy chief calls for enhancing drone capabilities for maritime security

Pakistan navy chief calls for enhancing drone capabilities for maritime security
Updated 16 July 2025

Pakistan navy chief calls for enhancing drone capabilities for maritime security

Pakistan navy chief calls for enhancing drone capabilities for maritime security
  • Admiral Naveed Ashraf chairs meeting of navy’s apex decision-making forum in Islamabad 
  • Drones help countries detect threats, track enemy movements, monitor maritime borders

ISLAMABAD: Pakistan Navy Chief Admiral Naveed Ashraf on Wednesday called for increasing the country’s capabilities in drones and unmanned systems to counter threats at sea, the navy said. 

These comments from Ashraf came while he chaired a meeting of the navy’s Command & Staff Conference at the Naval Headquarters in Islamabad. The conference is the apex decision-making forum of the navy, where its chief, principal staff officers and field commanders review policies and strategic plans.

“Admiral Naveed Ashraf also emphasized the development of capabilities in unmanned systems, including drones and unmanned surface/underwater vessels, to enhance surveillance and response capabilities,” the navy’s media wing said in a statement. 

Ashraf underscored the importance of maintaining perpetual combat readiness to effectively counter both traditional and non-traditional threats in the maritime domain, the statement added. 

He appreciated the navy’s efforts to maintain maritime security during Pakistan’s four-day military conflict with India in May, highlighting the country’s “robust defense capabilities.”

“Naval Chief commended PN’s proactive measures in ensuring continuous flow of supplies through Sea Lanes of Communication (SLOCs) and uninterrupted operations at seaports,” the navy said. 

Unmanned systems and drones help a country detect threats, track enemy movements and monitor maritime borders without risking lives. 

These monitoring systems are cost-effective as well, helping navies extend their reach without the need for additional ships or personnel.