KARACHI: The Public Accounts Committee (PAC) of the Sindh Assembly was informed on Tuesday that the pension liabilities of the retired employees of the Karachi Metropolitan Corporation (KMC) and town municipal corporations (TMCs) would reach Rs20 billion by 2027.

The PAC meeting, headed by its chairman Nisar Ahmed Khuhro, was informed that the pension liabilities of the retired employees of the KMC and TMCs had increased from Rs714 million to Rs13bn.

It was informed that the KMC had established a pension fund with Rs2.76bn and its Rs570m profit was continually paid as pension liabilities to the retired employees.

The meeting was told that the KMC had failed to pay the Rs13bn pension liabilities to the retired employees whose liabilities would reach Rs20bn by 2027.

The PAC meeting, attended among others by KMC Commissioner Syed Afzal Zaidi, also reviewed the audit reports of KMC from 2018 to 2020.

The DG Audit raised an objection that the KMC had failed to pay pension dues to its retired employees.

The KMC official told the PAC that the responsibility of paying pension to the retired employees of KMC as well as TMCs had been placed on the KMC and due to the retirement of a large number of employees, the pension dues of retired employees of the KMC had increased from Rs714m to Rs13bn.

He further said that the KMC was not getting as much funds from the provincial finance department.

Mr Zaidi told the PAC that KMC had established a pension fund of Rs2.76bn for the past three years, under which the city municipality received a profit of Rs570m from the bank. “The profit is being used to pay pension dues to retired employees,” he added.

He said that the number of the retired employees of the KMC and TMCs would further increase in 2026 and 2027, due to which the pension dues on the KMC would reach Rs20bn.

Published in Dawn, May 21st, 2025