The federal government has implemented significant changes to the pension system for government employees, fulfilling a key demand from the International Monetary Fund (IMF).
As of the new year, a ban has been imposed on government officials and employees from receiving double pensions. A notification has been issued to formalise the changes, Express News reported.
The new system will automatically include pension increments through computerised methods, eliminating manual procedures. This also means that the pension records of over 300,000 employees have been computerised.
In addition to this, the government has introduced several reforms to streamline pension calculations. With these changes, important government officials will only be eligible for one pension.
The implementation of these reforms is expected to save billions from the national treasury annually.
The new rules specify that annual pension increments will apply to the first pension only, and future pensions will be calculated based on the last 24 months of service.
The Pay and Pension Commission will review the basic pension every three years. The Ministry of Finance has immediately implemented the recommendations of the 2020 Pay and Pension Commission.
Finance Minister Muhammad Aurangzeb previously announced that public sector employees hired from the next fiscal year onward will no longer be eligible for state-funded pensions upon retirement as part of significant pension reforms.
Speaking to the media on the sidelines of ‘The Future Summit – What Matters Now,’ Aurangzeb explained that, under the reforms, employees will contribute from their monthly salaries to build their own pension funds.
PM Shehbaz launches economic initiative ‘Uraan Pakistan’ programme
Prime Minister Shehbaz Sharif on Monday inaugurated the economic initiative ‘Uraan Pakistan’, declaring it a pivotal moment for the nation’s future.
Speaking at the launch ceremony held in Islamabad, attended by senior government officials, federal ministers, and institutional heads, the premier said, “Today is a historic day as we commence the journey of Uraan Pakistan.”
The prime minister highlighted the coalition government’s struggle to stabilise the economy during Pakistan’s 2023 financial crisis. “When we were on the brink of default and striving for the IMF programme, we decided to prioritise saving the state over politics,” he said.
PM Shehbaz accused opposition elements of attempting to block the IMF programme, calling it a grave injustice to the people. Despite these hurdles, he noted, “We have successfully achieved macroeconomic stability.”
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