Important Tribunal Orders on Pension, Upheld by Supreme Court of Pakistan

I shall share here the details of Important Tribunal Orders on Pension, Upheld by Supreme Court of Pakistan. You will read in this article the various references in this connection.


Important Tribunal Orders on Pension, Upheld by Supreme Court


Court cases – Muhammad Farooq, Pensioner


  1. Mr. Muhammad Farooq, retired Deputy Director, had submitted Appeal No.1107(R)/CS/2016 on 2 June 2016 before the Federal Service Tribunal Islamabad for grant of all increases in pension (including those from 2001 onward till anticipated restoration of commuted part in 2018) on Gross amount of Pension. He claimed that the act of AGPR in allowing increases from 2001 onward on Net Pension was illegal, as the 2001 orders did not apply to him because he had retired in 2000 [before the 2001 scheme came into effect].  The honorable Tribunal allowed the appeal on 7.2.2018 and issued directions for grant of the pension benefits prevalent (along with 1994 payscales) before 2001.   The relevant extract from Paragraph 7 of the FST order is reproduced below:


Important Tribunal Orders on Pension, Upheld by Supreme Court of Pakistan


It is totally unlawful and arbitrary on the part of the Finance Division to bring a matter of pension of a person who retired prior to 2001 under the policy of the Revised Basic Pay Scale 2001.  There is no doubt that at the time of retirement the appellant was governed by the policy of 1994 which allowed increases on a gross pension.  We, therefore, hold that OM dated 02.07.2002 cannot be given retrospective effect.  The appellant would continue to be governed under the policy parameters of 1994 and would be entitled to increases on his gross pension, sanctioned at the time of retirement of the appellant.

  1. Finance Division Civil Petition No.1002/2018 for leave to appeal against the FST orders was considered by the Supreme Court on 21.11.2019. The Court recorded admittance by the Additional Advocate General that the pensioner (Mr. Muhammad Farooq) was governed by the policy of 1994 at the time of his retirement.  This being the case, “he would be entitled to the said policy and its benefits”.  The government petition being devoid of merits was dismissed and leave to appeal was refused.

SCP Order same for All


It is so unfortunate that while Finance Division and the AGPR office were still in the process of implementing the FST orders, Mr. Muhammad Farooq expired in June 2020 without reaping the benefit of the Tribunal orders dated 7.2.2018, upheld by the Supreme Court on 21.11.2019.  It is anybody’s guess when the benefit will actually be received now by his successors.

  1. People are expected to be well aware of the spirit of Supreme Court directions (relevant extract below) appearing on page 4 of Supreme Court Monthly Review Vol XLII 2009. Pensioners equally placed (having retired before the 2001-scheme) anticipated that while implementing the FST orders in Appeal No. 1107(R)/CS/2016 of Mr. Muhammad Farooq, upheld by the Supreme Court, the government would issue general orders applicable to all eligible persons.  Such general orders are however still awaited.  Numerous other equally-placed pensioners are therefore entering into fresh litigation on the same issue.

It was held by this Court in case of Hameed Akhtar Niazi v.  The Secretary  Establishment Division Government of Pakistan and others 1996 SCMR 1185, that if a Tribunal or this Court decides a point of law relating to the terms and conditions of a civil servant who litigated,  and there were other civil servants, who may not have taken any legal proceedings, in such a case, the dictates of justice and rule of good governance demand that the benefit of the said decision be extended to other civil servants also,  who may not be parties to the litigation instead of compelling them to approach the Tribunal or any other legal forum

  1. All pensioners who retired before the 2001 scheme and other readers are welcome to benefit from this article.

Agha Amir Ahmad


[email protected]


You may also like: Legal Aspects of 2001 Payscales

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