Sindh High Court Warns of Freezing KMC, Town Accounts Over Non-Payment of Pensions

Karachi: The Sindh High Court has expressed strong displeasure over the non-payment of pensions and dues to retired employees of local government institutions, warning authorities of strict action.

During the hearing of a contempt of court petition filed against the Mayor of Karachi and others, a constitutional bench headed by Justice Adnan-ul-Karim Memon granted a two-week extension to the concerned authorities on the request of the government lawyer. The court also directed the Karachi Metropolitan Corporation (KMC) and Town Municipal Corporations (TMCs) to submit details of their accounts.

The petitioner’s counsel, Advocate Usman Farooq, argued that the court had already ordered in May 2025 that pensionary benefits be paid, directing the finance department to address any shortfall in funds. He added that KMC was also instructed to continue pension payments for two years.

Despite clear court orders, the payments have reportedly been completely halted, leaving retired employees facing severe financial hardship.

Expressing anger over the situation, the court remarked that the accounts of KMC and TMCs should be frozen for failing to comply with its orders. However, upon assurance from the government lawyer that dues would be cleared if given time, the court allowed a two-week deadline.

The court warned that if payments are not made within the given period, it will proceed with freezing the accounts of the concerned institutions.