SHC seeks report on payment of retirement dues to ex-PSM employees

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A view of the Sindh High Court. — Photo courtesy Wikimedia Commons/File
A view of the Sindh High Court. — Photo courtesy Wikimedia Commons/File

KARACHI: The Sindh High Court on Tuesday directed the federal authorities to apprise it of the steps taken for the release of funds after it was informed that the Ministry of Industries & Production has not been responding to a proposal made around 17 months ago for the release of over Rs19 billion mainly for payment of post-retirement dues of retired employees of Pakistan Steel Mills (PSM).

A two-judge constitutional bench of the SHC headed by Justice Mohammad Saleem Jessar ordered the secretaries of the ministries of finance and industries & production to appear either personally or through duly authorised officers at the next hearing to inform it about the efforts and the status of the request for the release of requisite funds.

Over a dozen petitions were filed by hundreds of retired employees of the PSM between 2017 and 2024, seeking directives for respondents to pay their post-retirement dues.

At the outset of the hearing, the counsel for PSM filed a report about compliance with an undertaking given by it at an earlier hearing for payment of outstanding dues of petitioners.

In 17 months Ministry of Industries and Production has not responded to a proposal for release of Rs19bn for Pakistan Steel Mills retirees, bench told

It is submitted in the report that the PSM has been continuously pursuing the federal government through the Ministry of Industries & Production for the release of Rs19.656bn, including over Rs15bn approved by the board of directors of PSM at a meeting held in May last year for placing the same before the Economic Coordination Committee (ECC).

The lawyer for PSM contended that the board of directors had been consistently pursuing the matter with the ministry through various communications seeking release of requisite funds for disbursement of outstanding pensionary benefits.

However, the counsel also argued that no response has so far been received from the ministry as the matter required consideration by the ECC for necessary approval and release of funds.

The bench in its order noted that despite the lapse of considerable time and repeated efforts made by the PSM, the issue about release of required funds remained unresolved.

It also observed that as per the report of the PSM, the matter was being pursued at the federal level, but the present status of the proposal, including whether it has been placed before the ECC for consideration, has not been clarified.

“Since the subject matter concerns pensionary benefits of former employees, who have been awaiting payment of their claimed dues for a considerable period, we consider it appropriate that the concerned federal government authorities should apprise this court of the steps taken and the present status of the matter, so that these long-pending petitions may be proceeded with effectively and brought to their logical conclusion without unnecessary delay”.

The bench directed the secretary of the finance ministry to appear either personally or through a duly authorised officer, who must be fully conversant with the facts of the matter, and inform it about the status of the request for release of funds, financial implications involved in the matter and the steps taken or proposed to be taken by the ministry regarding payment of outstanding pensionary benefits of petitioners.

It also ordered the secretary of the Ministry of Industries & Production to appear in person or depute an officer to submit a comprehensive report, supported by relevant documents, indicating whether the proposal for funds has been or is to be placed before the ECC and apprise it about the current status.

It further asked the secretary that if the proposal has not yet been placed before the forum, the reasons behind such delay and steps being taken for its expeditious processing must also be explained.

Adjourning the hearing till Dec 17, the bench directed a federal law officer to ensure that these directions must be conveyed to the authorities concerned well before the next hearing, enabling them to make necessary arrangements for compliance.

Published in Dawn, October 28th, 2026

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