Subsidy Claim By The Utility Stores Corporation
Subsidy Claim By The Utility Stores Corporation: The country’s biggest state run retail chain Utility Store Corporation (USC) has urged the government of Pakistan to settle Rs.27.6 billion subsidy claim. These are pending for the last seven years, which is creating financial crisis for the company. This amount got up to this number on account of maintaining subsidized prices of 11 items like black gram, daal channa, daal masoor, mash shelled, masoor whole, white gram, daal mash washed, daal moong washed, sugar, utility ghee and utility oil.
Utility Store Corporation which has more than 5,000 outlets across the country, recorded a sharp decline in sales to less than Rs1.5 billion a month from Rs7.5 billion previously.
Sugar Subsidy Claim
The government has yet to clear Rs23.25 billion on account of sugar subsidy claims from July 2011 to October 2014 and Rs1.882 billion in prime minister’s relief package from 27 April to 31 December 2016.
If subsidy claim is not facilitated in time
- Cash flow which is badly affected will get worse and USC will be unable to clear the outstanding payments of vendors to the tune of Rs4 billion.
- Furthermore, USC will be unable to obtain further stocks.
Sources in the corporation shared with media sources that the irregularities are found mainly in the procurement of commodities and sales.
Drop in Sales Since 2013
The outlets run short of essentials such as oil, ghee and sugar. The item is available in Islamabad only but not anywhere else where it is mostly required. After a complaint filed in the Supreme Court against substandard and adulterated cooking oil at its outlets the corporation stopped selling ghee and oil sales. Officials said the corporation should take action against those who were involved in procurement of substandard products.