Ministry of Industries and Production (MoIP) wanted to link Benazir Income Support Programme (BISP) with Utility Stores Corporation (USC), sources in the Finance Ministry said. An official of the Finance Ministry told Business Recorder that Ministry of Industries had suggested Utility Stores Corporation (USC) be given exemption from Public Procurement Authority (PPRA) rules 2004 to make the organisation financially viable.
He said that officials of the USC and Ministry of Industries and Production had given a detailed presentation to the Finance Minister Dr Abdul Hafeez about their plan to increase the annual turn over of the organization. They strongly dispelled the general impression that the USC was running into losses and stated that its financial condition was stable and the USC Board of Directors is well aware of it.
The Ministry of Finance was informed that the audited subsidy claims of USC stood at Rs 11.278 billion in 2010. The subsidy claim on ghee and oil was Rs 1.085 million and on sugar Rs 8.854 billion. The rest of the subsidy claims were on rice, pulses, tea as well as atta (flour) and wheat besides Ramazan package. The officials revealed that USC was running into profit despite selling essential commodities below market rate because all branded goods were procured directly from national and multinational companies. The rebate and discount obtained was passed on to the customers through reduction in the prices. The USC was also procuring sugar from the Trading Corporation of Pakistan (TCP) at prices fixed by the Economic Co-ordination Committee of the Cabinet, they added.
The sources further said that the prices of commodities at USC were lower by 5 to 15 per cent as compared to open market. The Ministry of Industries wants USC to expand the number of USC stores from 5,000 to 10,000 and was urging opening of stores in low-income urban localities and rural areas to provide essential commodities at subsidised rates to the people. The USC wants support from the Finance Ministry to expand and support in accessing banking facilities.