Pension and dues non-payment crisis becomes critical

The issue of pension and retirement dues for employees of 25 towns of Karachi Metropolitan Corporation (KMC) has become grave, with more than Rs. 9.86 billion required to clear outstanding liabilities.

The constitutional bench of the Sindh High Court (SHC) heard the case; during the hearing, officials revealed that the payment of pension and retirement benefits to former employees had reached a critical stage.

The KMC has taken the stand before the court that over Rs. 9.86 billion was needed to fully settle pension-related obligations and retirement benefits payable to retired employees.

A lawyer of Karachi Metropolitan Corporation maintained that correspondence with the provincial government was underway regarding the provision of funds.

He added that the Director Welfare had already submitted a summary to the Government of Sindh. The KMC’s Council also pleads with the court to seek a detailed report from the Sindh government on the availability of funds.

During the hearing, the KMC Finance Department stated that monthly pension payments to pensioners of the Town Municipal Corporations (TMCs) were being made regularly in compliance with court orders.

However, he noted that the funds allocated for monthly pensions were insufficient to cover outstanding retirement dues and other pending liabilities, for which additional funding would be required.

Taking notice of the situation, the SHC has directed the Sindh Finance Department to submit a detailed report on the provision and distribution of funds to the TMCs.

The court has issued strict instructions to the finance department and the government of Sindh and ordered that the implementation report should be submitted to the court at the next hearing scheduled for June 18, 2026.