No.DDLG-2(2)/2025/031
18-March-2025
Office Of The Deputy Director Local Government Department
Sindh Government Enforces Pension & Provident Fund for Local Councils – Action Required:
The Local Government Department of Sindh has issued a crucial directive to all Union Committees in District Korangi, Karachi, mandating the establishment of separate funds for employees’ financial security. As per the latest government notification, all local councils across the province are required to deposit 20% of their total income, along with salary deductions, into three dedicated accounts:
✅ Provident Fund
✅ Pension Fund
✅ Benevolent Fund
This move is aimed at ensuring long-term financial stability and social security benefits for government employees. The directive has been issued under the orders of the Regional Director, Local Government, Karachi Division and the Sindh Government’s Local Government and Housing Town Planning Department.
To comply with this mandate, local councils must open these accounts in Sindh Bank Limited within three days and report back to higher authorities. Failure to comply may lead to administrative action. This notification serves as a significant development in ensuring better financial planning and employee welfare within local councils.
OFFICE OF THE
DEPUTY DIRECTOR
LOCAL GOVERNMENT DEPARTMENT
DISTRICT KORANGI, KARACHI
No.DDLG-2(2)/2025/031
Karachi, dated the 18th March, 2025
To
The Chairmen/Secretaries,
Union Committees (All),
District Korangi, Karachi.
SUBJECT: ESTABLISHMENT OF PENSION FUND, PROVIDENT FUND AND SOCIAL INSURANCE.
With reference to letter bearing No.RDLG-2(16)/2024 dated 18.03.2025 of Regional Director, Local Government, Karachi Division issued in pursuance of Government letter No.SO-V(LG)/1-78/2019 dated 18th March, 2025 issued by the Section Officer-V, Local Government and Housing Town Planning Department, Government of Sindh, whereby it has been directed to all the Local Councils of the Province to establish following separate accounts and maintain the same by depositing 20% of all the income of the Council as well as contributions/deductions from salaries of the employees for their benefit:-
- Provident Fund.
- Pension Fund.
- Benevolent Fund.
Accordingly, it is requested to open the above referred account separately in the nearest branch of Sindh Bank Limited and compliance thereof may be furnished within 03 days positively for onward transmission to the high ups, as directed.
DEPUTY DIRECTOR
LOCAL GOVERNMENT DEPARTMENT
DISTRICT KORANGI, KARACHI

Ensuring Employee Welfare: The Need for Pension & Provident Fund Compliance:
The establishment of Pension, Provident, and Benevolent Funds is a step towards employee welfare and financial security in Sindh’s local government sector. This initiative will help government employees secure their future by ensuring retirement benefits and financial assistance during emergencies.
All Union Committees in District Korangi must act swiftly and comply with the Sindh Government’s directives by opening the required accounts at Sindh Bank Limited within the given deadline. Timely compliance will ensure smooth financial management and help employees benefit from retirement savings, provident fund contributions, and social insurance schemes.
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