KARACHI – Sindh government scrapped the controversial contributory pension scheme it had rolled out last year, reinstating the traditional pension system for all newly hired provincial employees.
The story started in September 2024, when Sindh Cabinet, in meeting chaired by Chief Minister Murad Ali Shah, approved Sindh Defined Contributory Pension Scheme (SDCPS). Under this new plan, employees would no longer receive the familiar pension and gratuity. Instead, they were required to contribute 10% of their basic salary each month, while the government would chip in an additional 12%.
The move was approved through amendment to the Sindh Civil Servants Act, 1973, stipulating that anyone appointed or regularized after the Sindh Civil Servants (Amendment) Act, 2024, came into force would fall under the contributory scheme rather than the traditional pension plan.
But barely a year later on 17 September 2025, Finance Department issued bombshell Office Memorandum. It officially revoked the earlier notification issued on 1 November 2024, terminating the SDCPS and restoring the old pension system in one swift stroke.
This sudden policy reversal has left many employees and analysts questioning the planning and execution behind the short-lived pension reform, raising concerns about the government’s long-term approach to employee benefits.
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