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

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 Cardio-vascular Diseases.

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