SHC wants KMC to sell assets to settle Rs4.2bn dues of pensioners

Published December 17, 2020
The Sindh High Court on Wednesday directed the city administrator to identify 25 properties of the Karachi Metropolitan Corporation (KMC) to sell since a proposed special grant of the provincial government would not be sufficient to settle the dues of its pensioners. — INP/File
The Sindh High Court on Wednesday directed the city administrator to identify 25 properties of the Karachi Metropolitan Corporation (KMC) to sell since a proposed special grant of the provincial government would not be sufficient to settle the dues of its pensioners. — INP/File

KARACHI: The Sindh High Court on Wednesday directed the city administrator to identify 25 properties of the Karachi Metropolitan Corporation (KMC) to sell since a proposed special grant of the provincial government would not be sufficient to settle the dues of its pensioners.

A two-judge bench headed by Justice Nadeem Akhtar also directed a committee headed by the Sindh chief secretary to file its report on Dec 22 about a one-time grant to KMC for settlement of the dues of KMC pensioners.

It observed that the post-retirement benefits of KMC’s retired employees was Rs4.246 billion and could not be settled by the proposed monthly grant-in-aid or the provincial government may give a one-time special grant.

Therefore, the bench while observing that the only option left was to sell the assets of the KMC directed the administrator to identify at least 25 properties from the list placed before the bench.

The bench was informed that the committee, constituted on its order to explore the possibilities of resolving the issue, met twice and proposed that the special monthly grant-in-aid of Rs430 million being given to KMC should be enhanced to Rs600m.

The KMC also submitted the list of its immoveable properties including bungalows and apartment in posh areas of the city, which were in the possession of its officers.

Sindh govt has approved Rs500m bailout package for KDA

The bench directed the local government secretary to verify the ownership of such bungalows and apartments and submit a report on the next hearing.

It was further pointed out that the KMC also owned 250 beach huts in Hawkesbay. However, the lawyer for the KMC submitted that all leases of huts had recently been cancelled.

Several retired employees of the KMC moved the SHC against non-payment of their post-retirement benefits.

Rs500m grant for retired KDA employees

The provincial authorities also informed the same bench that the Sindh government had approved an amount of Rs500m as a one-time grant/bailout package to settle the dues of retired employees of the Karachi Development Authority.

The finance and local government secretaries asked the bench to direct the KDA to follow seven recommendations that had been made after receiving the bailout package.

The officials of the provincial government as well as the KDA sought reasonable time to finalise the strategy for utilisation of the package as well as the amount to be realised by liquidating the investments of KDA by selling its properties.

The bench directed both the secretaries and KDA officials to file their reports by Dec 17.

The bench passed these directives on a set of petitions moved by retried employees of KDA seeking their post-retirement dues.

Published in Dawn, December 17th, 2020

Opinion

Editorial

Delicate balance
Updated 13 Mar, 2026

Delicate balance

PAKISTAN has to maintain a delicate balance where the geopolitics of the US-Israeli aggression against Iran are...
Soaring costs
13 Mar, 2026

Soaring costs

FOR millions of households already grappling with Ramazan inflation, the sharp increase in petrol and diesel prices...
Perilous lines
13 Mar, 2026

Perilous lines

THE law minister’s veiled warning to the media to “exercise caution” and not cross “red lines” while...
Collective security
Updated 12 Mar, 2026

Collective security

Regional states need to sit down and talk. They must also pledge and work towards collective security.
Spectrum leap
12 Mar, 2026

Spectrum leap

THE sale of 480 MHz of fifth-generation telecom spectrum for $507m is a major milestone in Pakistan’s digital...
Toxic fallout
12 Mar, 2026

Toxic fallout

WARS can leave environmental scars that remain long after the fighting is over. The strikes on Iran’s oil...