Sindh Cabinet Approves Contributory Pension Scheme 2024

Sindh government

Karachi, September 15, 2024 – The Sindh Cabinet has approved the implementation of the Sindh Defined Contributory Pension Scheme 2024, set to take effect from July 1, 2024. Under this scheme, both the government and employees will contribute towards the pension fund, with the government contributing 12% and employees contributing 10% of their salaries.

In a meeting held at CM House, attended by provincial ministers, advisors, the chief secretary, and relevant officials, the cabinet approved the insertion of a new subsection in the Sindh Civil Servant Act 1973. The amendment specifies that civil servants appointed after the enactment of the Sindh Civil Servant (Amendment) Act, 2024 will not be entitled to traditional pension and gratuity benefits. Instead, they will participate in the new Defined Contribution Pension Scheme. In case of the employee’s death, their family will receive funds from the Contribution Pension Fund under the newly formulated Defined Contribution Pension Rules.

The Sindh Cabinet also decided to protect and declare the Karoonjhar Mountain Range, consisting of 21,000 acres, as a heritage site following a Sindh High Court ruling. The Culture Department was directed to notify the declaration in the official Gazette.

Addressing concerns related to marine resources, the Livestock & Fisheries Department pointed out that overfishing and destructive fishing methods, particularly bottom trawling, have caused significant damage to fish stocks and marine biodiversity. To combat this, the cabinet approved amendments to the Fisheries Rules 1983, banning the use of harmful fishing methods such as “wire net” and “bottom trawling” within twelve nautical miles of Sindh’s coastline.

In another significant decision, the cabinet approved the release of Rs. 3.3 billion to sugar mills as part of the Cash Freight Support for sugar exports. This follows a High Court ruling directing federal institutions to release the outstanding payments to the mills. Additionally, Rs. 281 million was sanctioned for Additional Cash Freight Support payments to the mills.

The Sindh Cabinet also took steps to operationalize the Islamkot Mega RO Plant in Tharparkar, approving Rs. 434.109 million for its rehabilitation to provide clean water to the local population. The Public Health Engineering Department has been tasked with expediting the project within the next three months.

Further, the cabinet approved the formation of the Sindh IT Company, marking a crucial step toward creating a “Digital Sindh.” This initiative is part of the broader strategy to modernize the province’s infrastructure and foster technological advancements.

Another critical decision was the approval of increased remuneration for 5,019 teachers from the National Commission for Human Development (NCHD) and Basic Education Community Schools (BECS). Their monthly salaries were raised to Rs. 37,000, adding an additional burden of Rs. 539.542 million to the provincial exchequer.

Additionally, the cabinet approved handing over Cadet College Kakar in Dadu district to the Pakistan Navy, with Rs. 250 million sanctioned for completing its remaining components. Admissions to the college will begin soon.

Lastly, the Sindh Cabinet endorsed the issuance of the Benazir Hari Card for farmers with up to 25 acres of land, offering subsidies and relief to assist in agricultural activities. The administrative control of the Sindh Institute of Physical Medicine & Rehabilitation (SIPM&R) was also shifted to the Department of Empowerment of Persons with Disabilities, aligning with the Sindh Empowerment of Persons with Disabilities Act 2018.