Lahore: On Tuesday, the federal government and other important authorities received letters from the Lahore High Court (LHC) regarding a plea contesting the privatization of Pakistan’s Utility Stores.
The rulings were issued by Justice Muhammad Raza Qureshi following the hearing of preliminary arguments.
The federal government, the Secretary of the Cabinet Division, the Secretary of the Ministry of Law, and the Managing Director of Utility Stores were all served with notices by the court.
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The petitioner brought the appeal, a long-time employee of Utility Stores, who claimed that the company, which had been in business for 10 years prior to the appeal, is a successful business that pays Rs. 25 billion in taxes every year.
He said in court that Utility Stores made a net profit of Rs. 2 billion while covering a sizeable portion of its own operating expenses and payroll.
The petitioner asserted that the stores’ closure is being carried out in accordance with International Monetary Fund (IMF) regulations, a move that may result in 11,000 jobs being lost.
He used the Companies Act of 2017, which described the procedures for shutting a firm, to support his claim that only a court order or the board of directors’ orders could be used to conduct such steps.
According to him, the Board deemed Utility Stores to be a lucrative enterprise.
The petitioner requested that the court void the Cabinet Division’s letter from August 7, 2024, and the minutes from its August 9 meeting.