KARACHI: Local government minister Saeed Ghani acknowledged delays in pension payments, employee dues and persistent waste management challenges in Karachi during the Sindh Assembly session on Friday.
Saeed Ghani told the house that liabilities for employees who retired after July 2017 remain unpaid while earlier payments have been settled.
In reply to MQM’s lawmaker, Abdul Waseem’s call attention notice, the minister admitted the pressing issue of pensions and employee dues as “worrying” for the retired workers but also explained the reasons that continued backlogging payments.
He told the assembly that retired employees of Karachi Metropolitan Corporation (KMC) are still awaiting the clearance of Rs13 billion in outstanding dues. KMC pensions are now being disbursed regularly and provident funds have also been cleared, he added.
However, he showed concerns that the financial burden persists, saying that the Sindh government is providing KMC with Rs1.2 billion monthly for salaries and pensions, a practice that began as a temporary loan during Mustafa Kamal’s tenure but has grown into a substantial monthly commitment.
He added that the government has recently approved an additional Rs2.76 billion as a loan for KMC, even as the organization has increased a revenue generation from its own sources.
Pensions are being disbursed regularly to all retirees of the Karachi Development Authority (KDA), he said and further revealed that the provincial cabinet recently approved a grant of Rs500 million for the Hyderabad Development Authority (HDA). A sub-committee has been established to ensure smoother mechanisms for disbursing employee dues in the future, preventing similar delays.
He also highlighted that the Sindh Building Control Authority (SBCA) has no outstanding dues for its employees. However, the Karachi Water and Sewerage Corporation (KWSC) is grappling with Rs5.1 billion in unpaid dues from July 2020 to December 2024. Of this amount, Rs2.1 billion is owed by various government institutions, which has now been reconciled, while KWSC is pursuing Rs2.5 billion in additional claims.
Moreover, KWSC is also owed Rs12.5 billion by federal institutions as reconciliation efforts are underway to address these claims. Saeed Ghani expressed optimism, saying that “with improving revenues at KWSC, employees’ dues will be cleared soon.”
Responding to concerns raised by MQM’s Muhammad Aamir Siddiqui regarding uncollected garbage in areas like Jamshed Town and the proximity of waste dumps to residential and educational zones, the minister explained systemic challenges.
The minister cited the expiration of contracts with Chinese waste management firm and disputes over payment terms. “Initially, contracts were dollar-based, leading to inflated costs. We’ve now transitioned all contracts to Pakistani rupees, but some companies are resisting this change. New contracts will soon be awarded to ensure solid waste management resumes efficiently,” he said.
He also addressed ghost employees in the waste management workforce, stating that many staff members failed to report for duty and were consequently terminated. He highlighted the ongoing efforts to build garbage transfer stations, without which waste dumping in residential areas cannot be entirely eradicated.
Answering to MQM’s lawmaker, Muhammad Maaz Mehboob’s call attention notice on illegal charged parking, Saeed Ghani acknowledged the problem but clarified that local governments do not have the authority to regulate it. “Designated parking areas are under KMC and town administrations, but illegal parking enforcement is the responsibility of the police and other law enforcement agencies,” he added.
He emphasized that the government’s efforts are continuing to streamline governance, improve employee accountability and address infrastructure deficiencies. Despite significant hurdles, he assured the assembly that measures are underway to resolve longstanding issues impacting Karachi’s residents and municipal employees.
Copyright Business Recorder, 2025
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