The Punjab Small Industries Corporation (PSIC) has approved two new pension schemes for its employees. The decision is part of wider reforms to restructure the corporation’s pension system and address its outstanding financial liabilities.
The decisions were taken during a recent meeting of the PSIC board. The board also agreed to seek a Rs2.5 billion loan from the Punjab government to meet pension-related obligations.
The corporation is also taking steps to improve its financial position through better use of its assets. The board approved a schedule for auctioning unused and redundant PSIC properties.
PSIC has already been auctioning surplus properties and cancelled plots as part of its financial reforms. Its 2026 auction programme covers several industrial estates across Punjab.
These include industrial estates in Sundar-II, Kasur, Gujranwala, Sialkot, Faisalabad, Sargodha, Sahiwal and Bahawalpur. The auctions are intended to generate funds and improve the use of PSIC-owned assets.
The board also approved a special relief package for allottees whose plots were cancelled at the Sundar-II Small Industrial Estate. Under the package, eligible allottees will receive a 20 percent discount on their total outstanding dues.
The discount will be subject to specific conditions linked to industrial development. Beneficiaries will have to complete construction of their factories within six months.
They will also be required to start regular production within two years. Allottees must comply with the applicable PSIC requirements for establishing and operating industrial units.
Sundar-II is one of PSIC’s self-financed industrial estates. The estate was developed between 2004 and 2019 and currently has 321 plots. Four plots are currently available.
The latest measures are aimed at discouraging speculative holding of industrial plots. PSIC also wants to encourage allottees to develop their plots and establish operational industrial units.
The corporation had previously stated that plots could be cancelled if industrial units were not established according to its policies. The latest relief package provides eligible allottees with an opportunity to regularise their position under specified conditions.
The PSIC board also approved the minutes of its previous meeting. Several pending administrative matters were also cleared during the meeting.
The latest decisions come as PSIC continues to implement financial and operational reforms. Pension liabilities remain an important financial issue for the corporation, particularly in relation to its retired employees.
In July, the PSIC board approved a Rs14.285 billion budget for the financial year 2026-27. The board also approved additional support for retired employees.
This included a Rs400 million contribution from PSIC resources to its pension fund. The board also approved an increase in the medical allowance for retired employees.
The new pension schemes, proposed government loan and property auctions are expected to support PSIC’s efforts to manage its financial obligations. The corporation is also seeking to improve asset utilisation and strengthen the performance of its industrial estates.
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