The Federal Board of Revenue (FBR) collected over Rs22 billion in the heads of various workers funds from approximately 500 Sindh-based industrial establishments during the tax period from 2014 to 2021 but it did not transfer any amount from that money to the provincial government.
Sindh Chief Minister Syed Murad Ali Shah revealed this on Friday while presiding over a joint meeting of the labour and finance departments at the CM House.
“We will meet with the federal government to resolve various issues, including the release of pending funds and the recovery of the Sindh Workers Welfare Fund (SWWF) and the Sindh Workers Participation Fund (SWPPF).”
The meeting was attended by provincial ministers Saeed Ghani and Ziaul Hassan Lanjar, Karachi Mayor Murtaza Wahab, Finance Secretary Fayaz Jatoi, Secretary to the Chief Minister Raheem Shaikh, Law Secretary Ali Ahmad Baloch, Labour Secretary Rafiq Qureshi and others.
The CM also noted that the FBR had collected billions of rupees from trans-provincial entities such as the Oil & Gas Development Company, Pakistan Petroleum Limited, Sui Southern Gas Company and the Engro group, yet it had failed to transfer any funds to the Sindh government since 2016-2017.
It was pointed out that following the passage of the 18th Constitutional Amendment, the power to collect the SWWF and SWPPF from industrial establishments - both intra-provincial and trans-provincial - rested exclusively with the provinces. The CM was informed that the WWF and WPPF collected from trans-provincial industrial establishments amounted to Rs25.36 billion, which was currently under review by the Sindh High Court and being deposited in the court.
The CM stated that he would request the prime minister to resolve this issue and ensure that provinces, particularly Sindh, received their rightful shares.
The CM was informed that the Workers Welfare Board was responsible for constructing flats and houses, as well as providing quality education free of charge to workers’ children at workers model schools and colleges.
The board also offered financial assistance for uniforms, shoes, books, and bags, amounting to Rs10,000 per child, along with a grant of Rs200,000 for the marriage of each worker's daughter, post-matric scholarships for workers’ children, and financial aid to the legal heirs of deceased workers, amounting to Rs700,000 each, the meeting was told.
The discussion also covered the devolution of assets and liabilities of the WWF and the Employees Old-Age Benefits Institution (EOBI) from the federal government. The CM expressed his intent to discuss this matter with the prime minister.
