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Karachi town chairmen move SHC against mandatory pension fund allocation

KARACHI: Several chairmen of municipal towns in Karachi have approached the Sindh High Court (SHC), challenging the provincial government’s directive requiring them to set aside 20 per cent of their funds for pensioners.

The high court has issued notices to the Secretary of Local Government, the Director General of the Local Government Department and other respondents, seeking their replies by December 18.

In their petition, the town chairmen maintained that the Local Government Department had instructed them to reserve 20 per cent of their allocated funds for pension payments without any legal justification.

Representing the petitioners, their counsel argued that no existing law makes such an allocation compulsory and that the government notification does not cite any legal provision to support the directive.

The lawyer further contended that reserving one-fifth of the available funds for pensioners could adversely affect development projects and public welfare initiatives across Karachi’s municipal towns.