KARACHI: Considering the future financial implications of pension payments, caretaker Chief Minister retired Justice Maqbool Baqar on Wednesday directed the finance department to introduce pension reforms to reduce the burden on provincial exchequer.

Presiding over a meeting of the finance department, he also ordered the delisting of ghost pensioners, saying that total expenditure on pension was 14 per cent of current revenue expenditure which was very high.

“The deputy commissioners should verify pension cases through public hearings with the finance department,” he added.

The Pakistan Peoples Party-led provincial government had also approved the pension reforms in one of its cabinet meetings in 2021 apprehending that the pension bill would exceed the salary bill within next 10 years if the post-retirement liabilities were continued.

Interim CM orders finance dept to take action against ‘ghost’ pensioners

The CM was told that 17.7pc of the total budget was current revenue expenditure in which 14pc of funds were consumed in pensions.

“There should be a system in which government employees must contribute a minor portion of their salaries to their pension fund which should be invested to reduce the burden on the government exchequer,” he added.

The chief minister directed the finance department to also bring reforms in treasury, saying that the payment of pension was being delayed in the treasury.

He said that the federal rate was 42.5pc and the provinces’ share was 57.5pc in divisible pool. He said that the Punjab got 51.74pc, Sindh 24.55pc, KP 14.62pc and Balochistan nine per cent from the divisible pool.

He said that the 17.7pc of the total Rs2.282 trillion provincial budget was the current revenue expenditure which comprised 38pc of salaries, 14pc of pensions, 23pc of grants and 25pc of other expenditures.

He directed the finance department to introduce reforms in treasuries to plug corruption and delist ghost pensioners.

The chief minister pointed out that there were growing complaints of corruption in the treasuries. “The treasury officers not only create problems in releasing pensions, but also run a system under which ghost pensioners’ pensions were pocketed,” he said.

He said that most of the retiring employees were running from pillar to post to receive their gratuities and pensions.

The CM directed the finance department to introduce automation in all the treasuries so that pensions and other payments could be released through a digitalised system in time.

The finance secretary assured the CM that an automation system would be introduced.

Meanwhile, the chief minister was told that Rs30 billion was required to fulfill the additional funding of the local council due to a 50pc increase in their monthly share.

Published in Dawn, September 21st, 2023