KARACHI: Multiple district accounts offices in Sindh are under investigation for allegedly embezzling billions of rupees from pension funds. According to reports, municipal employees were falsely declared alive to siphon off millions of rupees in pension payments. The Federal Investigation Agency (FIA) has launched a probe into the alleged misappropriation of pension funds in Hyderabad, while the concerned bank has also initiated a departmental inquiry into the matter.
The investigation began after a complaint from the operations manager of the Hyderabad municipal branch bank. Action has been taken against the branch manager, municipal staff, and district treasury office employees allegedly involved in the fraud. Records of pension funds from January 2021 to August 2024 have been requested from the Hyderabad District Accounts Officer, along with details of officers who served in the pension section during this period.
The inquiry revealed that a fictitious woman was portrayed as the widow of the late Adeeb Dar Muhammad Kamal and was paid Rs. 4.3 million in pension. Additionally, the fraudulent recipient was receiving the monthly pension of the deceased Adeeb. This pension was falsely issued by the Hyderabad District Accounts Office.
Meanwhile, the Government of Pakistan is working on introducing several reforms to the pension system, as the national pension cost is expected to reach Rs. 2 trillion by the end of fiscal year 2024. If no reforms are implemented, this cost could rise to Rs. 10 trillion over the next decade. The pension cost, which was Rs. 25 billion in the fiscal year 2002-03, has surged to over Rs. 1.5 trillion in just 20 years, indicating that the current pension system in Pakistan is unsustainable for the long term.
