KARACHI: The Sindh High Court warned the federal authorities on Monday that the federal government’s accounts would be attached for settlement of dues if the remaining amount of the Pakistan Steel Mills pensioners was not released by Aug 31.

Officials of the ministries of finance and cabinet division informed the SHC that Rs1.30 billion, 10 per cent of the total claims of the petitioners, had been released and undertook that the remaining 90pc amount would be allocated in the upcoming budget.

The two-judge bench headed by Justice Nadeem Akhtar observed that besides the petitioners, all other retired employees of the PSM were also entitled to the same treatment.

Therefore, the bench directed the federal government and the PSM to requisite funds to settle the post-retirement claims of all such retired employees of the PSM and deposit the same with the Nazir of the SHC by Aug 31.

In the last hearing, the bench had granted a last opportunity to the federal authorities to settle all the dues of the PSM pensioners by May 15.

When a set of identical petitions moved by over 10 retired employees of the PSM came up for hearing on Monday, the deputy attorney general placed the statement on record with several reports submitted by the secretaries of finance and cabinet division.

According to these reports and statement, in order to comply with the SHC order the ministry of industries and production in consultation with the finance division had submitted a summary to the ECC of the cabinet for settling the outstanding liabilities of former employees of the PSM who had approached the court.

It further said that Rs12.741bn was approved and out of it Rs1.30bn (10pc of claims of litigants) was released and the remaining amount would be allocated in the budget for 2020-21.

The PSM lawyer confirmed it and submitted that the amount would be paid only towards the post-retirement benefits. Joint secretary for finance Abdul Hadi Bullo and additional secretary of cabinet division Ghufran Memon were present during the proceedings and they undertook that the remaining amount would be deposited by the federal government with the Nazir by Aug 31.

The bench directed the Nazir that upon deposit of the amount, he should expeditiously disburse it to the retired PSM employees after verification of their claims by the PSM.

“It is clarified that if the remaining 90% amount of the claim is not deposited by the federal government within the stipulated period, the account(s)/fund(s) of the federal government shall be attached for settlement of the dues of the petitioners,” the bench said in its order.

It also observed that all the other retired employees of the PSM were also entitled to the same treatment being given to the petitioners and directed the officials to clear their dues with the petitioners by Aug 31.

The bench directed the PSM to submit a complete list of claims of all such retired employees, who had not approached the court, within 15 days and also asked the deputy attorney general to come up with a compliance report on Sept 3.

Three retired employees of the PSM had petitioned the SHC in 2017 and later more former employees joined them and contended that they were not being paid their gratuity, leave encashment and provident fund dues since 2013.

Published in Dawn, May 19th, 2020