Cabinet committee explores voluntary pension scheme for domestic, agricultural, self-employed and other workers outside the formal sector.
ISLAMABAD: Pakistan has begun examining a voluntary pension scheme aimed at extending retirement protection to domestic workers, agricultural workers, self-employed persons and other members of the informal workforce.
A meeting of the Cabinet Committee on Pension Reforms for the Uncovered Labour Force was held under the chairmanship of Federal Minister for Law and Justice Senator Azam Nazeer Tarar.
Federal Minister for Overseas Pakistanis and Human Resource Development Chaudhry Salik Hussain, Minister of State for Finance and Revenue Bilal Azhar Kayani, Adviser to the Prime Minister Haroon Akhtar Khan and relevant officials attended the meeting.
The committee reviewed different models for bringing workers currently excluded from pension arrangements into the formal pension system. It also discussed a voluntary scheme that could cover domestic workers, agricultural labourers, self-employed individuals and other informal workers.
Participants considered possible arrangements for contributions by employers, employees and self-employed persons, along with digital registration, transparent record-keeping and the long-term financial sustainability of the proposed system.
The meeting also examined the possibility of using the Employees’ Old-Age Benefits Institution (EOBI) digital system as a model for the proposed voluntary pension scheme.
Senator Azam Nazeer Tarar said every worker should have access to a dignified and secure retirement and that pension protection should not remain confined to the formal sector.
He said bringing informal workers within the social protection framework was an important requirement and stressed that the proposed pension system should be accessible, financially sustainable and designed for the long term.
The minister added that the initiative would be aligned with international standards and International Labour Organisation (ILO) principles.