Pakistan Announces Pension Reforms; Abolishes Multiple Pensions

Pakistan Announces Pension Reforms; Abolishes Multiple Pensions

ISLAMABAD: In an effort to address the growing strain on the national budget caused by pension obligations, Finance Minister of Pakistan Ishaq Dar Saturday announced a series of pension reforms, including the establishment of a Pension Fund and the abolishment of multiple pensions for officers of grade 17 and above.

Recognizing the unsustainable nature of the current pension system, the Finance Minister emphasized the need for comprehensive reforms. He stated that rules and regulations for the newly established Pension Fund are currently being formulated. The Pension Fund aims to provide a more sustainable and efficient framework for managing pension payments.

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Under the new reforms, officers of grade 17 and above will no longer be eligible for multiple pensions. Instead, retired officers will receive only one pension, streamlining the pension system and ensuring fairness in the distribution of pension benefits.

In addition, the Finance Minister announced that, following the death of a pensioner and their spouse, the dependents will receive the pension for a maximum period of 10 years. This provision aims to strike a balance between providing support to the dependents of deceased pensioners while also addressing the financial constraints faced by the pension system.

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Furthermore, the reforms address the issue of reemployment after retirement. Retired officers who choose to reenter the workforce will have the option to either receive a pension or a salary, allowing them to make an informed decision based on their individual circumstances.

The Finance Minister emphasized that these difficult decisions are necessary to steer the country in the right direction and ensure the long-term sustainability of the pension system. By implementing these reforms, the government aims to address the financial strain caused by pension obligations and create a more efficient and equitable system that aligns with the country’s economic realities.

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These pension reforms signify a commitment to responsible fiscal management and reflect the government’s determination to address the challenges associated with pension obligations. It is hoped that these measures will contribute to a more sustainable and effective pension system that benefits both retired public servants and the overall economy of Pakistan.

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