ISLAMABAD: Finance Ministry is reportedly reluctant to pay Rs 11.65 billion to settle liabilities of PSM retired employees, well informed sources told Business Recorder.
Sharing the details, sources said that he Government of Pakistan has disbursed Rs. 12.741/- billion to retired employees of PSM who filed petitions in the Sindh High Court, which in the same order of May 18, 2020 also directed the Federal Government to pay the liabilities of all the retired employees who have not approached the court. During the last hearing held on 30 September, 2020 the Chief Executive Officer (CEO)-PSM stated that the amount payable to non-litigant retired employees of PSM comes out to be Rs.11.680 billion as on 18th May, 2020. The Joint Secretary, Finance Division, stated that the amount shall be arranged by the Ministry of Finance and the Ministry of Industries and Production.
The sources said Ministry of Industries and Production shared a draft summary of February 14, 2020 for the ECC of the Cabinet, with Finance Division for comments in which a request was made for arranging funds to the tune of Rs. 20.875 billion for settling the outstanding liabilities of all PSM employees retired till December, 2019.
However, on the comments of Finance Division, the ECC, in its decision taken on April 22, 2020, approved Rs. 12.7441billion for the payment of dues to litigants only.
The sources said Sindh High Court, in its decision of September 3, 2020 directed the Federal Government that the amount payable to non-litigant retired employees must be submitted to the Nazir of the Court by September 30, 2020.
The Ministry of Industries and Production maintains that it does not have sufficient financial resources to settle the liability of the retired employees of PSM. Therefore, the draft summary for the arrangement of funds amounting to Rs.11.680 billion was shared with the Finance Division for views/comments, which has indicated a reluctance to release the amount.
The Ministry of Industries and Production has requested ECC of the Cabinet to direct the Finance Division to release payment of Rs. 11.680 billion to PSM to settle the liabilities of retired employees of PSM upto May 18, 2020.
Copyright Business Recorder, 2020
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