An official stated that the ECC sought a strategy in the next meeting on how the entity, which is facing losses and remained on privatisation list for quite some time, would be revitalised. The ministry stated that since 2007-08, PMTF has been accumulating losses mainly due to non-diversification of products & therefore has a narrow customer base. Additionally, the PMTF was also on privatisation list and the banks did not extend the credit limit and the supply chain was also affected. Resultantly it failed to settle dues of retired employees.
A summary was moved to ECC in April 2008 for grant/loan of Rs 823 million for payment of outstanding dues of 661 employees, which were retired between December 2008 and December 2017; however, Rs 300 million were approved.
There were 321 retired employees who remained unpaid due to insufficient release and some of them moved the court and the Sindh High Court on September 4, 2018 in its judgement on the matter deemed it "highly discriminatory" and ordered that the secretary should complete the exercise within 90 days.
The ECC was told that exigency to settle dues of 321 retirees, who remained unpaid whereas their colleagues of identical circumstances were paid, is imminent while another 94 retirees would be added to them by December 2018. In addition, PMTF, which is cash-stripped to the extent of inability to pay the salaries to its employees, currently requires an amount of Rs 833 million; (i) retirement benefits for left over employees retired between December 2008 and December 2017 - Rs.523 million; (ii) retirement benefits for employees retiring in year 2018 - Rs 214 million; (iii) and salaries for the months of September to November 2018 - Rs 96 million.
The PMTF reportedly has orders in hand and, given the above breather, it is likely to overcome its financial problems. The Ministry, therefore, proposed that ECC may allow a grant of Rs 833 million for PMTF.
The Finance Division was consulted and it has recommended provision of Rs 60 million only for clearing the dues of 34 former employees of PMTF. Prima facie, Finance Division has limited the grant to the extent of the former employees who went to the court.
The ministry requested to the ECC that dues admissible should be settled irrespective of the fact whether the eligible claimants are litigants or not. Therefore, the amount of Rs 737 million on account of the retirement benefit till December 2018 may be allowed as a grant and the remaining Rs 96 million for salaries as a loan.