The federal government has implemented significant changes to the pension system for public employees, meeting a key demand of the International Monetary Fund (IMF).
Starting in the new year, a ban was imposed on government officials and employees from receiving double pensions. A notification was issued to formalize the changes, Express News reported.
The new system will automatically include pension increases through computerized methods, eliminating manual procedures. This also means that the pension records of more than 300,000 employees have been computerized.
In addition to this, the government has introduced several reforms to streamline the calculation of pensions. With these changes, important government officials will only be entitled to one pension.
The implementation of these reforms is expected to save billions from the national treasury annually.
The new rules specify that annual pension increases will apply only to the first pension and future pensions will be calculated based on the last 24 months of service.
The Wages and Pensions Commission will review the basic pension every three years. The Ministry of Finance has immediately implemented the 2020 recommendations of the Wages and Pensions Commission.
Finance Minister Muhammad Aurangzeb earlier announced that public sector employees hired from the next fiscal year onwards will no longer be eligible to receive state-funded pensions upon retirement as part of major 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 their monthly salaries to create their own pension funds.
PM Shehbaz launches ‘Uraan Pakistan’ economic initiative program
Prime Minister Shehbaz Sharif on Monday inaugurated the economic initiative ‘Uraan Pakistan’, declaring it a crucial moment for the nation’s future.
Speaking at the launch ceremony held in Islamabad, which was attended by senior government officials, federal ministers and institutional heads, the Prime Minister said: “Today is a historic day as we begin the journey of Uran Pakistan.”
The prime minister highlighted the coalition government’s struggle to stabilize the economy during Pakistan’s financial crisis of 2023. “When we were on the brink of default and struggling to deliver on the IMF programme, we decided to prioritize saving the state over politics,” he said. .
Prime Minister Shehbaz accused opposition elements of trying to block the IMF programme, calling it a grave injustice towards the people. Despite these obstacles, he noted, “we have successfully achieved macroeconomic stability.”
