Lahore: Notices have been issued to the federal government and other parties regarding the closure of Utility Stores.
Justice Muhammad Raza Qureshi of the Lahore High Court heard a petition against the closure of Utility Stores across the country.
The court issued notices to the federal government, Secretary of the Cabinet Division, Secretary of the Ministry of Law, and the Managing Director of Utility Stores.
The petitioner claimed that he has been an employee of Utility Stores for 10 years.
He stated that Utility Stores is a profitable entity, paying 25 billion rupees in taxes annually.
The net profit of Utility Stores is 2 billion rupees, while the organization covers billions of rupees in expenses and salaries itself.
According to the petitioner, the closure of Utility Stores is being implemented based on IMF directives.
The closure would lead to unemployment for 11,000 individuals. The Companies Act of 2017, Sections 293 to 426, outlines the process for closing a company.
Any company can be closed based on a court order or board of directors’ directives. The board of directors has declared Utility Stores a profitable entity.
The petitioner has requested the court to annul the Cabinet Division’s letter issued on August 7, 2024, and the minutes of the Cabinet Division meeting held on August 9.