Sindh cabinet approves new pension scheme for govt employees

KARACHI: The Sindh cabinet has approved a new pension scheme for government employees.

The decision was taken at a meeting of the provincial cabinet chaired by Sindh Chief Minister Murad Ali Shah, during which several important decisions were endorsed.

According to a spokesperson for the Sindh chief minister, the new pension scheme will apply to government employees recruited on or after July 1, 2024.

The cabinet was briefed that the Sindh finance department will enter into agreements with pension fund managers, who will be registered with the Securities and Exchange Commission of Pakistan (SECP).

Under the scheme, pension fund managers will manage four sub-funds: money market, debt, equity index and equity.

The meeting was informed that insurance coverage of Rs1 million will be provided to the employees in cases of natural death or disability, while Rs2 million will be given in the event of accidental death. The insurance amount will be increased by 10 per cent annually.

The cabinet also approved a two-year extension for Sindh Revenue Board Chairman Dr Waseem Memon from December 2025 to 2027.

The extension was granted on the basis of his performance and revenue collection.

Chief Minister Murad Ali Shah said that revenue collection increased by 140 per cent during Dr Memon’s tenure.

The Sindh cabinet also approved the purchase of a historic building on MA Jinnah Road for the establishment of an IT Tower.

The Habib Insurance Company/HBL Foreign Exchange building has been selected for the Sindh IT Tower project, the meeting was told.

The meeting reviewed the project in detail, including verification of ownership and price determination through the Board of Revenue. The cabinet was told that the total cost of the building has been set at Rs1.5 billion.

The chief minister said that the IT Tower would serve as a hub for digital innovation, incubation, training and provincial government IT operations.

The cabinet gave final approval to purchase the historic building for Rs1.5 billion.

According to the chief minister’s spokesperson, the cabinet also approved the appointment of three judicial members to the Human Rights Commission. They are Iqbal Hussain Maitlo, Anand Ram and Ahmed Luqman Memon.

The cabinet discussed amendments to the Thar Coal and Energy Board Act and subsequently approved the Thar Coal and Energy Board (Amendment) Bill 2025.

It was decided to align the Thar Coal Tariff Determination Rules 2014 and send the amendment bill to the Sindh Assembly.

Murad Ali Shah said the regulatory role of the Thar Coal and Energy Board would be strengthened in line with national regulators, while the procedure for the appointment and tenure of the managing director would be improved.

He said the amended draft was approved after legal scrutiny and would enhance transparency in the Thar coal and energy sector.