LAHORE – The Lahore High Court (LHC) on Tuesday issued notices to the federal government and other key officials on a plea challenging privatization of the Utility Stores in Pakistan.
Justice Muhammad Raza Qureshi passed the orders after hearing preliminary arguments.
The court issued notices to the federal government, the Secretary of the Cabinet Division, the Secretary of the Ministry of Law and the Managing Director of Utility Stores.
The petitioner, a longtime employee of the Utility Stores, filed the petition and argued that the organization, which had been operational for last 10 years, is a profitable entity that contributed Rs25 billion in taxes annually.
He told the court that Utility Stores generated a net profit of Rs2 billion and absorbed significant operational costs and salaries independently.
The petitioner claimed that closing down the stores is being implemented in compliance with directives of the International Monetary Fund (IMF), which could lead to the unemployment of 11,000 workers.
He gave references of the Companies Act 2017, which outlined the procedures for closing a company, arguing that such actions could be taken only under a court order or the directives of the Board of Directors.
The Board, he said, reportedly classified Utility Stores as a profitable business.
The petitioner asked the court to annul the letter issued by the Cabinet Division on August 7, 2024, and as well as the minutes from the Cabinet Division’s meeting on August 9.
