KARACHI: The Sindh government has decided to raise the issue of Rs120 billion Workers’ Welfare Fund, which the Federal Board of Revenue (FBR) had collected from industrial establishments and trans-provincial entities operating in the province, but never transferred to the province.

The decision was taken at a Public Accounts Committee (PAC) meeting which was chaired by Nisar Ahmed Khuhro in the Sindh Assembly Committee Room on Thursday.

The meeting participants expressed concerns over the FBR’s withholding of Sindh’s “rightful share” of the fund, which included contributions from major trans-provincial entities such as Engro, Sui Southern Gas Company, and Oil & Gas Development Company Limited (OGDCL).

The meeting was also attended by Makhdoom Fakhar Zaman, Sindh labour department secretary Rafique Qureshi and senior officials.

PAC chairman says the amount gathered under Workers’ Welfare Fund belongs to the province

A statement issued after the meeting said that the PAC reviewed the audit reports concerning the Sindh labour department from 2018 to 2020.

“PAC chairman Khuhro raised concerns about the status of Sindh’s share of the Workers’ Welfare Fund, asking the labour department about the progress of the fund,” said the statement.

“In response, secretary Qureshi informed the committee that while the FBR had collected Rs120 billion from various industries and trans-provincial entities, the funds had not yet been transferred to the Sindh government. Moreover, Rs25 billion was deposited in the High Court by some industries, but the court instructed that the amount be handed over to the FBR until the matter is resolved by the Council of Common Interest (CCI).”

The participants said the PAC chairman, expressing his frustration, strongly criticised the FBR for withholding Sindh’s rightful share, calling it an “unjust” action.

He emphasised that following the 18th Constitutional Amendment, the authority to collect and manage the Workers’ Welfare Fund belonged to the provincial government.

He also accused the federal government of violating the Constitution by collecting the funds through the FBR and failing to release the share of Sindh.

“The PAC chairman urged the prime minister to take immediate action to ensure a swift release of Rs120 billion to Sindh, asserting that the province will not compromise on its constitutional rights. He reaffirmed that Sindh would continue to demand its due share,” added the statement.

The committee also resolved to send an official letter to the FBR chairman and the federal government, seeking clarification on the matter, and to summon FBR officials for a formal briefing.

Mr Khuhro further pointed out that unlike Khyber Pakhtunkhwa, where the Workers’ Welfare Board had yet to be fully transferred to the provincial government, Sindh had already established that body. Despite that the funds collected by the FBR had not been transferred to the province, he added.

“The withheld funds are intended for the welfare and well-being of Sindh’s workers. The PAC reiterated its stance that Sindh must receive its fair share and vowed to take up the issue at all relevant forums, including the federal government and the CCI,” added the statement.

Published in Dawn, February 21st, 2025