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Pension benefits: Senate panel slams non-payment to Pak PWD employees

August 13, 2026
Senator Nasir Mehmood, Chairman of the Senate Standing Committee on Housing and Works, is presiding over a meeting of the committee at Parliament House, Islamabad, on August 12, 2026.—Facebook@Pakistansenate
Senator Nasir Mehmood, Chairman of the Senate Standing Committee on Housing and Works, is presiding over a meeting of the committee at Parliament House, Islamabad, on August 12, 2026.—Facebook@Pakistansenate

ISLAMABAD: The Senate Standing Committee on Housing and Works has expressed serious concern over non-payment of pension benefits to employees of the erstwhile Pak PWD, who were adjusted in the Capital Development Authority (CDA).

A meeting of the committee was held under the chairmanship of Senator Nasir Mehmood to review implementation of the committee’s directions regarding the adjustment, salaries and pension matters of employees of the dissolved Pak PWD, in light of the prime minister’s directives. The secretary, Ministry of Housing and Works, briefed the committee on the current status of employees of the dissolved Pak PWD and informed it that all employees had been adjusted in accordance with the committee’s directions and were receiving their pay and allowances.

The chairman appreciated the efforts of senior officials of the ministries concerned in ensuring the adjustment of employees. The committee, however, expressed serious concern over the non-payment of pension benefits to employees adjusted in the CDA, who had either retired or died during service.

The committee was informed that pension cases were pending due to differing interpretations regarding the status of these employees. CDA and Ministry of Interior officials also confirmed that 1,468 employees were being paid. It was informed that the Finance Division was releasing funds only for their pay and allowances, with no allocation for pensions or medical reimbursement.

Finance Division officials maintained that the employees were not entitled to pensions, arguing that work-charged employees did not fall within the category of regular government servants. They said pension rules were governed by cabinet decisions and that pensions were paid through the Accountant General Pakistan Revenues (AGPR). The officials, however, acknowledged that a 2007 Finance Division letter had declared the employees eligible for pensions but maintained that the letter itself was erroneous.

The housing secretary said the Finance Division was claiming that it had never issued the letter. Finance officials responded that if the letter had not been issued by the division, it would have to be treated as fake. The committee chairman said the matter concerning the origin of the letter would be referred to the Federal Investigation Agency (FIA).

The committee emphasised that the adjustment of Pak PWD employees had been carried out on the directives of the federal cabinet and should therefore be accompanied by all the attendant rights and privileges.

The committee was informed that the Ministry of Interior had prepared a summary for submission to the prime minister, as the Finance Division’s opinion was binding on ministries and divisions. The matter, therefore, could only be resolved through a decision by the prime minister or the federal cabinet. The committee chairman questioned why the summary had not been sent to the prime minister if the matter was essentially related to pensions. Interior ministry officials replied that Interior Minister Mohsin Naqvi was abroad and that the summary would be sent to the PM after his return. The chairman directed that the summary be submitted within three days.

After detailed deliberation, the committee unanimously resolved that the matter should be addressed on humanitarian grounds and without further delay. Minister for Housing and Works Riaz Hussain Pirzada said the controversy reflected weaknesses in the government system that had eventually led to institutions being closed. He said officers who had taken decisions were not held accountable, while the burden of answering for those decisions fell on the current leadership.

Reiterating the committee’s commitment to the welfare of former Pak PWD employees, Nasir said the committee stood with the affected employees and would continue pursuing the matter until their legitimate issues were resolved.