Pakistan allocates $108 million to close Utility Stores in drive to reform state enterprises

Pakistan allocates $108 million to close Utility Stores in drive to reform state enterprises
A Pakistani man carries a bag of flour after receiving the flour from the utility store in Karachi on June 12, 2008. (AFP/File)
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Updated 12 min 16 sec ago

Pakistan allocates $108 million to close Utility Stores in drive to reform state enterprises

Pakistan allocates $108 million to close Utility Stores in drive to reform state enterprises
  • Approved funds will cover severance, dues and closure costs of USC
  • USC assets, including real estate, to be sold within current financial year 

ISLAMABAD: Pakistan’s top economic decision-making body on Thursday approved a Rs30.216 billion ($108 million) funding package to wind down the Utility Stores Corporation (USC), a state-run retail chain that has long been a financial drain on the national exchequer. 

The Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Muhammad Aurangzeb, said the plan would allow for the orderly closure of USC while covering severance payments, employee compensation and outstanding dues.

“The decision represents a major step in responsibly addressing the longstanding financial burden of USC on the national exchequer, while also safeguarding the interests of employees affected by the closure,” the finance division said in a statement.

“By approving severance, compensation and payment of outstanding dues, the Government is ensuring that workers receive their entitlements, thereby cushioning the social and economic impact of USC’s winding up.”

The ECC said the Ministry of Industries and Production would rationalize closure costs and that USC assets, including real estate, would be sold within the current financial year to partially offset liabilities.

“The approved financial package underscores the Government’s commitment to protecting employees’ welfare while ensuring fiscal discipline in the winding down of USC’s operations,” the Finance Division statement added.

The decision marks a significant step in Pakistan’s efforts to reform state-owned enterprises, many of which face chronic losses. The closure of USC comes as Pakistan enforces fiscal discipline under a $7 billion IMF program approved in September 2024.

Established by the government in 1971, the corporation has a nationwide chain of retail outlets that provide essential commodities to the general public at prices lower than those in the open market.

The corporation took over 20 retail outlets at the beginning but now operates 6,000 stores across the country. The government allocated Rs65 billion ($229.7 million) to subsidize the products sold by the retail chain in the last fiscal year.

USC has struggled with inefficiencies, corruption scandals and mounting subsidies for years, with consumers complaining of substandard merchandise being sold and staff accused of vending subsidized products in the open market.


, Pakistan step up tourism cooperation with Karachi roadshow

, Pakistan step up tourism cooperation with Karachi roadshow
Updated 9 sec ago

, Pakistan step up tourism cooperation with Karachi roadshow

, Pakistan step up tourism cooperation with Karachi roadshow
  • Roadshow showcases Saudi Vision 2030 projects from Red Sea resorts to Neom City
  • Officials highlight growing scope beyond pilgrimage, including leisure and business travel

KARACHI: and Pakistan stepped up efforts to boost travel links on Wednesday as the Saudi Tourism Authority (STA) held a joint roadshow in Karachi to showcase the Kingdom’s expanding tourism offerings under its Vision 2030 plan.

The event, aimed at highlighting ’s growing potential as a leading global tourism destination and promoting travel opportunities for Pakistani travelers, drew key players from the travel and aviation sectors, corporate representatives and media.

Under Vision 2030, , long known as a destination for pilgrims from across the globe, is seeking to reposition itself as a hub for leisure, cultural and adventure experiences.

The Kingdom has launched giga-projects such as Neom, opened up Red Sea resorts, and begun promoting entertainment, corporate incentive travel and destination weddings.

“ is one of the top destinations for Pakistanis,” said Sofia Al-Khawar, STA’s country manager, addressing the event.

She said the Kingdom was not only focused on religious travel but was also expanding its offerings to leisure, business and events tourism.

“It is a rising destination. It has a lot to offer. Not limited to the religious side, of course, that remains. But your plus element is always your leisure, your vacations, your MICE trips,” she said, referring to meetings, incentives, conferences and exhibitions (MICE).

A special Saudi delegation focused on MICE tourism will visit Pakistan next week, she added, offering “a one-week special bonus discounts” to potential groups.

Muhammad Rafiq Khan, chairman of Bukhari Group of Companies that co-hosted the event, said the collaboration represented a significant opportunity for both nations.

“ and Pakistan have had deep ties since the very beginning,” he said. “Most people used to travel there for Hajj and Umrah. Now, by the grace of God, the Saudi government and administration have made efforts to develop tourism, and there are many great places in worth visiting.”

Khan said Pakistanis were increasingly willing to explore new destinations in the Kingdom beyond the holy sites.

“Every person in the groups we have taken there has enjoyed it immensely, especially the big historic places where the Prophet Muhammad (peace be upon him) stayed or visited, or the old landmarks of ,” he said.

Shoaib Mohammad, a former Pakistani cricketer who also attended the gathering, said the initiative would open “countless destinations where people can come, enjoy and visit the sacred sites.”

“This is a new opportunity given to the people of Pakistan, which is absolutely great,” he told Arab News.

He recalled his own recent visit, highlighting attractions in Jeddah, including “many amusement spots and play areas for children,” as well as global shopping brands now available in the city.

Usman Butt of Lucky Motors said was undergoing rapid transformation with world-class projects that could redefine its tourism sector.

“See, I think as of now has never been explored as a tourist destination. So, this would be something new for the world to explore,” he said.

He singled out Taif as “pretty, pretty attractive” and praised the futuristic Neom City project, calling it “next level in the world.”

“I don’t see anything like Neom City in the world happening maybe for the next 40 years,” he added.

The roadshow concluded with networking sessions and presentations aimed at strengthening Pakistan-Saudi travel ties and boosting the flow of tourists between the two countries.


Speculation over creating new provinces sparks political, legal debate in Pakistan

Speculation over creating new provinces sparks political, legal debate in Pakistan
Updated 6 min ago

Speculation over creating new provinces sparks political, legal debate in Pakistan

Speculation over creating new provinces sparks political, legal debate in Pakistan
  • Federal Minister Mustafa Kamal backs creation of new provinces, says his MQM party also supports plan
  • Analysts warn proposal for up to 38 provinces is politically sensitive, legally near impossible to achieve 

ISLAMABAD: A fresh debate has broken out in Pakistan over whether the country should be carved into more provinces, after a widely-quoted report by a new think tank suggested restructuring the federation into as many as 12 to 38 units to improve governance and reduce inequality.

The idea, long raised in Pakistani political circles, gained traction this week when the Economic Policy and Business Development think tank, set up by former caretaker prime minister Anwar-ul-Haq Kakar and ex-federal minister Gohar Ijaz, proposed multiple models for redrawing the map in a report released over the weekend. Pakistani media and politicians have since widely speculated on the plan, which would mark the most sweeping change in Pakistan’s administrative structure since independence.

Currently, Pakistan’s population of more than 240 million is divided into just four provinces — Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan — each serving on average over 60 million people. The think tank argued this was one of the highest ratios globally and had contributed to sharp disparities in poverty, education and access to services.

The institute’s report outlined scenarios for 12 provinces with about 20 million people each, or up to 38 provinces with around 6.3 million people per unit. It cited poverty rates of 30 percent in Punjab, 45 percent in Sindh, 48 percent in Khyber Pakhtunkhwa and 70 percent in Balochistan despite large budget allocations. Smaller provinces, the report said, could use resources more efficiently, raise new revenues through tax reforms and reduce deprivation.

Federal Health Minister Mustafa Kamal, a senior cabinet member, told Arab News he would support the plan to carve up new provinces. 

“Pakistan’s Field Marshal General Asim Munir spoke about the creation of new provinces while addressing the business community in Karachi,” Kamal told Arab News, repeating a claim he has previously made in television talk shows when asked to comment on new provinces.

He said his Muttahida Qaumi Movement (MQM) party supported the idea, adding that it “could bring prosperity to Pakistan.”

“In the context of a Federal Cabinet discussion, I would support this idea if it were to come up for discussion,” Kamal added. 

The military did not respond to requests for comment. 

Information minister Ata Tarar told Arab News he had “no idea” when asked if the government was planing to carve out new provinces. 

Federal Minister Aleem Khan and Senator Faisal Vawda — seen as close to the military, which has historically played a decisive role in shaping Pakistan’s politics — have publicly backed the proposal.

But resistance remains strong. 

Top aide to Prime Minister Shehbaz Sharif, Rana Sanaullah Khan, dismissed the idea as a “non-serious” distraction, while senior lawmaker Mushahid Hussain Sayed, in a social media post, called it a “wrong idea at a wrong time.” 

He argued that the government should instead strengthen local governments and hold provincial leaders accountable.

Experts say even if there were political will, constitutional hurdles make the plan unlikely. 

Creating new provinces requires a two-thirds majority in both houses of parliament and the consent of provincial assemblies, a threshold seen as nearly impossible with mainstream parties like the ruling Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP) opposed.

“Even if the PPP is coerced to support this move, nationalists in Sindh will launch a strong protest, making it very difficult to complete the process,” said Ahmad Bilal Mehboob, head of the Pakistan Institute of Legislative Development and Transparency.

Muktar Ahmad Ali of the Center for Peace and Development Initiatives agreed smaller provinces could improve efficiency but warned the debate was politically sensitive: 

“The timing is not correct … as the government is already seized with serious challenges like the economy and terrorism. A better approach would be to focus on devolution of power through local governments.”

Ahmad Nawaz Sukhera, the new think tank’s CEO and a former top bureaucrat, stressed the report had avoided politics, focusing only on economic disparities: 

“We highlighted regional disparities under various indicators, including human development index, and showed how more funds may attend to such deprivation.”


China to bolster non-Western alliances with Pakistan, other states at SCO summit, parade

China to bolster non-Western alliances with Pakistan, other states at SCO summit, parade
Updated 28 August 2025

China to bolster non-Western alliances with Pakistan, other states at SCO summit, parade

China to bolster non-Western alliances with Pakistan, other states at SCO summit, parade
  • Summit will be the biggest SCO gathering since its founding, with over 20 leaders attending
  • Analysts say Beijing will woo New Delhi, though core disputes with India remain unresolved

BEIJING: China’s President Xi Jinping will host world leaders including Russia’s Vladimir Putin and India’s Narendra Modi from Sunday for a summit before a huge military parade as he seeks to showcase a non-Western style of regional collaboration.

The Shanghai Cooperation Organization summit will be held Sunday and Monday, days before the military parade in nearby Beijing to mark 80 years since the end of World War II, which North Korea’s Kim Jong Un will attend.

The SCO comprises China, India, Russia, Pakistan, Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Belarus — with 16 more countries affiliated as observers or “dialogue partners.”

China and Russia have used the organization — sometimes touted as a counter to the Western-dominated NATO military alliance — to deepen ties with Central Asian states.

As China’s claim over Taiwan and Russia’s invasion of Ukraine have seen them clash with the United States and Europe, analysts say the SCO is one forum where they are trying to win influence.

More than 20 leaders including Iranian and Turkish presidents Masoud Pezeshkian and Recep Tayyip Erdogan will attend the bloc’s largest meeting since its founding in 2001.

Hosting this many leaders gives Beijing a chance to “demonstrate convening power,” said Lizzi Lee from the Asia Society Policy Institute.

But substantial outcomes, she added, are not expected as the summit would be more about optics and agenda-setting.

“The SCO runs by consensus, and when you have countries deeply divided on core issues like India and Pakistan, or China and India, in the same room, that naturally limits ambition,” Lee told AFP.

Beijing wants to show it can bring diverse leaders together and reinforce the idea that global governance is “not Western-dominated,” she added.

Assistant Foreign Minister Liu Bin said Friday that the summit will bring stability in the face of “hegemonism and power politics,” a veiled reference to the United States.

Putin’s attendance comes as Ukraine’s President Volodymyr Zelensky insists that a meeting with him would be “the most effective way forward.”

While US President Donald Trump has pushed to broker a Ukraine-Russia summit, Moscow has ruled out any immediate Putin-Zelensky talks.

Putin at the SCO summit will likely seek to demonstrate Russia’s continued support from non-Western partners to promote its narratives of the cause of war and “how the ‘just’ end of the war will look like,” said Dylan Loh, an assistant professor at Singapore’s Nanyang Technological University.

“With Putin in the room, the war will hang over the proceedings,” Asia Society’s Lee said, but added that the topic of Ukraine would not be “front and center” of the summit.

“The SCO avoids topics that divide members, and this one obviously does,” she told AFP.

But Putin will want to show that he “is not isolated, reaffirming the partnership with Xi, and keeping Russia visible in Eurasia,” Lee added.

Modi’s visit is his first to China since 2018.

The world’s two most populous nations are intense rivals competing for influence across South Asia and fought a deadly border clash in 2020.

A thaw began last October when Modi met with Xi for the first time in five years at a summit in Russia.

Caught in geopolitical turbulence triggered by Trump’s tariff war, they have moved to mend ties.

“China will try its very best to pull out all stops to woo India, particularly capitalizing on India’s trade issues with the US,” said Lim Tai Wei, a professor and East Asia expert at Japan’s Soka University.

But fundamental differences between the countries cannot be resolved easily, he cautioned.

“Temporary respite or temperature-cooling, however, may be possible,” Lim told AFP.

Modi was not present at China’s 2015 parade and it remains unclear if he will attend this year’s.

His attendance would be “a barometer of where the geopolitical wind blows in the global contestation between the West and China,” Lim said.

China and India announced in August that they would restart direct flights, advance talks on their disputed border and boost trade.


Pakistan tenders to buy 100,000 tons of sugar, European traders say

Pakistan tenders to buy 100,000 tons of sugar, European traders say
Updated 28 August 2025

Pakistan tenders to buy 100,000 tons of sugar, European traders say

Pakistan tenders to buy 100,000 tons of sugar, European traders say
  • Government has approved imports of 500,000 tons to stabilize prices after retail surge
  • Sugar for the new tender can be sourced from any country other than India and Israel

HAMBURG: The Trading Corporation of Pakistan (TCP) has issued a new international tender to purchase 100,000 metric tons of white refined sugar, European traders said on Thursday.

The deadline for price offers is September 8.

The state agency’s announcement is believed to indicate that no additional purchases were made in the TCP’s previous tender for 200,000 tons of sugar during negotiations this week, with only 30,000 tons bought.

Pakistan’s government has approved plans to import 500,000 tons of sugar to help to maintain price stability after retail sugar prices rose sharply.

Traders say that 135,000 tons have been bought in recent tenders.

In another sugar tender reported on August 14, the TCP bought 105,000 tons but some other tenders in July and August ended without purchases.

The TCP’s latest tender seeks price offers for fine, small and medium-grade sugar, with shipment for arrival of all sugar by October 31.

The sugar for the new tender can be sourced from any worldwide origin excluding India and Israel or other sanctioned countries.


Pakistan, Germany discuss ‘regional issues’ as Afghan deportation deadline looms

Pakistan, Germany discuss ‘regional issues’ as Afghan deportation deadline looms
Updated 28 August 2025

Pakistan, Germany discuss ‘regional issues’ as Afghan deportation deadline looms

Pakistan, Germany discuss ‘regional issues’ as Afghan deportation deadline looms
  • The two countries signed a €45 million cooperation deal this year on climate, energy and social protection
  • Both governments also reaffirmed defense and regional stability ties in a series of 2025 high-level contacts

ISLAMABAD: Pakistan’s foreign office said on Thursday Deputy Prime Minister and Foreign Minister Ishaq Dar discussed “regional issues” during a phone call with his German counterpart Johann Wadephul, as the two countries deal with the issue of Afghan refugees stranded in Pakistan.

Germany paused its humanitarian relocation program for vulnerable Afghans earlier this year, leaving thousands in limbo. Pakistan, meanwhile, has announced it will continue deportations of Afghan nationals, setting a September 1 deadline for registered refugees to leave.

Rights groups warn that those approved for resettlement in Germany face heightened risks in their homeland, where many had worked alongside Western forces after the Taliban regime was toppled following the 2001 US invasion.

German ministers also came under legal pressure at home amid fears Pakistan may expel vulnerable Afghans in the absence of coordinated Western resettlement measures.

“Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar @MIshaqDar50, received a call last night from German Foreign Minister, Dr. Johann Wadephul @AussenMinDE,” the foreign office said in a brief statement.

“The two leaders affirmed their resolve to further strengthen mutually beneficial bilateral cooperation, and underscored the importance of high-level contacts,” it added. “They also exchanged views on regional issues.”

The statement did not specify which regional issues were discussed.

Germany remains one of Pakistan’s key development and trade partners.

In February, the two sides signed a €45 million technical cooperation agreement on climate and energy, economic growth, employment, health and social protection.

Pakistan’s climate ministry also interacted with German experts this year to discuss building the country’s carbon market infrastructure.

Both governments have reaffirmed defense and regional stability cooperation in a series of high-level contacts in 2025.