Sindh Cabinet passes pension reforms scheme to save Rs894.4bn

Published June 5, 2021
The chief minister proposed to limit family pension to immediate family members. — Photo courtesy Sindh CM House Twitter
The chief minister proposed to limit family pension to immediate family members. — Photo courtesy Sindh CM House Twitter

KARACHI: The Sindh Cabinet considering the significance and future financial implications of pension payments on Friday approved a pension reforms scheme under which around Rs894.4 billion would be saved, otherwise the pension bill of the government would surpass the salary bill within next 10 years.

The cabinet meeting was held under the chairmanship of Chief Minister Syed Murad Ali Shah at CM House and attended by ministers, advisers and others.

The chief minister being in-charge minister of the finance department told the cabinet that in 2012 the number of government employees were 477,570 and their monthly salary and pension bill was Rs11.78bn and Rs6.523bn, respectively.

He said that in 2020 the number of employees increased to 493,182 and the monthly salary bill increased to Rs23.97bn while the pension bill rose to Rs13.329bn.

“If the same post-retirement liabilities are continued, the pension bill will exceed the salary bill within next 10 years,” he said.

Therefore a study was conducted so that necessary reforms could be introduced.

He said a restriction on early retirement (minimum 25 years of service and 55 years of age) with reduced pension was being proposed.

Another reform would be the use of average pay of the last three years of service as the basis to calculate the amount of pension instead of the last drawn salary.

Talking about family pension, the chief minister proposed to limit it to immediate family members.

“The family pension may be limited to wife or wives/husband/son (below 21 years)/daughter till marriage,” he said.

The cabinet approved the proposal.

Health Minister Dr Azra Fazal Pechuho presented a proposal to hand over Karachi Institute of Cardiovascular Disease to the Sindh Institute of Cardio­vascular Diseases.

The ­cabinet was told that the salary component of the KICVD was of Rs646.752m and non-salary component Rs66.6m.

It showed that the annual budget of the KICVD was Rs713.252m.

The cabinet approved the handover.

The health minister requested for provision of 28 cold chain vehicles, including 20 cold chain and eight ultra-freezing vaccine carriers for Rs348.853m for supply of Covid-19 vaccines across Sindh.

The cabinet approved the proposal.

The cabinet was told that there was a dire need of establishing a Sindh Institute of Advanced Endoscopy and Gastro­enterology Karachi at Dr Ruth Pfau Civil Hospital Karachi for treatment of poor patients.

The cabinet approved the proposal.

Agriculture Minister Ismail Rahu said the Sindh Seed Corporation may be given a one-time grant-in-aid of Rs158.612m for clearing liabilities of its serving and retired employees.

The cabinet observed that the SSC was a self-revenue-generating entity, therefore, it should develop its business plan to make it efficient.

The agriculture secretary told the cabinet that the SSC had 6,349 acres of land, of which 4,801 acres were cultivable.

The chief minister directed to prepare a plan to operate SSC on public-private partnership.

The cabinet also formed a committee to prepare a bailout plan for SSC and conduct an inquiry into its failure to generate funds and fix responsibility.

Published in Dawn, June 5th, 2021

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