Islamabad, March 25, 2026 – The Securities and Exchange Commission of Pakistan (SECP) has approved seven pension funds for the Government of Balochistan, marking a key step toward the implementation of the Defined Contribution (DC) pension system in the province.
According to a statement, this move is part of Pakistan’s broader pension reform strategy aimed at transitioning from the traditional Defined Benefit (DB) model to a more sustainable, transparent, and fiscally manageable Defined Contribution framework.
Shift Towards Contributory Pension System
Under the Defined Contribution model, pension benefits are determined by contributions made by both employees and employers into individual retirement accounts. The system is designed to improve transparency, give employees greater control over their retirement savings, and align pension payouts with investment performance.
Authorities noted that Punjab and Khyber Pakhtunkhwa have already implemented contributory pension schemes, while the Federal and Sindh governments are in the process of operationalizing similar frameworks.
The SECP has been actively supporting federal and provincial governments in developing legal and regulatory structures required for this transition across Pakistan.
Pension Funds and Approved Managers
The seven pension funds approved for Balochistan have been established under the Balochistan Contributory Pension Scheme Rules, 2025. These funds will be managed by SECP-licensed and A-rated pension fund managers, including:
• Atlas Asset Management Limited
• ABL Asset Management Limited
• Pak Qatar Family Takaful Limited
• Faysal Asset Management Limited
• Al Meezan Investment Management Limited
The SECP has also approved the offering documents for these funds to ensure compliance with regulatory standards and investor protection requirements.
Additional Pension Funds Under Review
In addition to the approved schemes, applications for 17 more pension funds are currently under process with various pension fund managers, indicating continued expansion of the contributory pension ecosystem in Pakistan.
Improving Fiscal Sustainability
Officials highlighted that the Defined Contribution system will help reduce long-term pension liabilities for governments by gradually shifting pension obligations off the public budget. This reform is expected to improve fiscal sustainability while ensuring long-term stability of the pension system.
The SECP reiterated its commitment to facilitating pension reforms and working closely with all stakeholders to ensure smooth implementation of modern, transparent, and efficient retirement solutions across the country.