Key Takeaways
- The Economic Coordination Committee (ECC) has approved a significant payout of Rs. 11.3 billion.
- This fund will settle outstanding dues for over 7,000 dismissed Utility Stores Corporation (USC) employees.
- The decision comes after years of delayed payments and protests from affected workers.
The Economic Coordination Committee (ECC) has approved the release of Rs. 11.3 billion to clear the outstanding dues of employees dismissed by the Utility Stores Corporation (USC).
This approval follows the government’s decision to wind up the state-owned corporation, which had left thousands of USC employees facing delays in receiving salaries, severance, and other financial benefits.
In September 2025, more than 7,000 employees were dismissed, while thousands of others had already been laid off earlier, leading to widespread protests over unpaid salaries and demands for immediate settlement of their severance and other dues.
The government had previously approved an initial financial package to cover employee severance, terminal benefits, salaries, and other liabilities, but progress was slow.
The Finance Ministry reported in September 2026 that substantial progress had been made in employee payments and the settlement of verified liabilities to close the corporation.
The approval of this significant payout is seen as a positive step towards resolving the long-standing issues faced by USC employees.
However, the process of distributing the funds is expected to take time, with workers hoping for a swift and fair settlement of their dues.
The ECC’s decision is a crucial milestone in the closure of the USC and aims to provide financial relief to the affected workers.
