Karachi, July 11, 2023 – In a move to provide relief to retired civil servants, the Sindh government has officially sanctioned a 17.5 percent increase in net pension, effective from July 1, 2023. This increase will apply to all civil pensioners across the province until further notice.
(more…)Tag: pension
-
Minimum Pension Raised to Rs12,000; Notification Issued
Islamabad, July 6, 2023 – The government of Pakistan has taken a significant step towards improving the welfare of retired individuals by announcing a substantial increment in the minimum pension.
(more…) -
Finance Division Notifies Increase in Pension by 17.50%
In a significant development, the Finance Division has issued a notification on Wednesday, July 5, 2023, announcing a substantial increase in the pension of government employees.
(more…) -
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.
(more…) -
Government Announces 18% Increase in EOBI Pension
Islamabad, June 21, 2023: In a significant move aimed at improving the financial well-being of government employees, the government of Pakistan has announced an 18% increase in the pension for pensioners of the Employees Old-Age Benefit Institution (EOBI).
(more…) -
Finance Division Facilitates Early Salary and Pension Disbursement Ahead of Eid ul Azha
Islamabad, June 21, 2023: The Finance Division has announced the early disbursement of salaries and pensions for the month of June 2023, in anticipation of the upcoming Eid ul Azha celebrations.
(more…) -
Pakistan Budget 2023-24: Salary and Pension Increased to Combat Inflation
Islamabad, June 9, 2023: In an effort to support government employees amidst a significant surge in inflation, Finance Minister Ishaq Dar announced an increase in salary and pension during the presentation of the budget for the fiscal year 2023-24.
(more…) -
Pakistan advised to include pension income in tax regime
An international advisory firm, Adam Smith International, has recommended that Pakistan expand its income tax framework to encompass pension income.
(more…) -
Pakistan announces early salary, pension for Government employees before Eid
In a recent announcement, the Pakistani government has decided to disburse the salary and pension payments for government employees ahead of Eid-ul-Fitr this month.
(more…) -
Non-resident Pakistanis allowed contribution in pension funds
KARACHI: The State Bank of Pakistan (SBP) has allowed non-resident Pakistanis to contribute in pension funds.
In a circular issued to banks/Authorized Dealers (ADs) on August 05, 2022, the SBP said in order to improve the value proposition of NRP Rupee Value Account (NRVA) and facilitating the non-resident Pakistanis (NRPs), it has been decided to allow NRPs to contribute in pension funds, authorized by the Securities and Exchange Commission of Pakistan (SECP) under Voluntary Pension Funds Rules 2005 (VPS Rules), through their Authorized Dealers. Accordingly, following amendments in Foreign Exchange Regulations have been made:
READ MORE: SBP issues options to make donation in PM flood relief fund
Para 8 (iv)(a) of Chapter 8- following new sub-clause has been added:
8. Contribution in units of Pension Fund authorized in terms of VPS Rules, under the management of Pension Fund Managers (PFMs) registered with SECP.
Para 8 (iv)(a) of Chapter 8- existing text has been amended as:
The transfer of funds for the above investments shall be allowed by the ADs through the special instructions received from NRVA holder in this behalf. For investments/ contribution mentioned at (1),(2),(5),(6),(7) & (8) above, the procedure prescribed for investment/ disinvestment/ redemption in Chapter 20 of the Foreign Exchange Manual shall be followed while for investment mentioned at (3) above, the terms and conditions prescribed at Annexure-A, at the end of this chapter, shall be followed.
Para 6 (B) of Chapter 20- following new clause has been added:
(IIIC) Issue of units of Pension Fund authorized by SECP in terms of Voluntary Pension Funds Rules 2005, under management of Pension Fund Managers (PFMs) registered with SECP to undertake pension fund scheme business.
READ MORE: SBP relaxes cash margin restriction on import
Para 9 of Chapter 20- following new clause has been added:
(E) Contribution in Units of authorized Pension Funds
NRP Rupee Value Account (NRVA) holders are allowed to contribute in pension funds, authorized in terms of Voluntary Pension Funds Rules 2005, under the management of Pension Fund Managers (PFMs) registered with SECP, through NRVA opened with an Authorized Dealer (AD) in Pakistan. Such contribution can be made in following manner:
Funds available in NRVA can be used for contribution in pension funds and payment for such contribution may be debited from the account on the specific request of the NRVA holder for onward credit to the bank account of trustee of the pension fund. The Net Asset Value (NAV) allocated with respect to each contribution along with copy of payment instrument/ details shall be provided by the PFM to the AD on the same day. PFM shall also send account statement to the AD within 24 hours of the realization of funds.
READ MORE: SBP advises banks to issue digital verification for remittances
In case of transfer of individual pension account of the NRVA holder from one pension fund to another pension fund of the same PFM, the PFM will share the details of the transfer transaction (including all details as reported for transfer from one pension fund to another fund) for their record of AD.
In case of transfer of individual pension account of the NRVA holder from one PFM to another PFM, the PFM will share the details of the transfer transaction (including all details as reported for transfer from one PFM to another PFM) for record of AD.
Redemption proceeds may be credited to respective NRVA, received from trustee of pension fund on account of redemption of units earlier contributed by participant through these accounts or bonus units issued thereon. The details of the same will be shared by the Trustee of pension fund/ PFM with the AD.
READ MORE: SBP takes regulatory action against TAG Innovation
The AD shall ensure that all issuance and redemptions are taking place at prevalent NAV announced publicly by the relevant PFM.
The banks shall maintain the complete reconciliation of amount transferred/received to/from trustee of pension fund, units contributed/redeemed by the participant there-against, and ensure the compliance of all related foreign exchange regulations.
READ MORE: SBP launches crackdown against exchange companies