ISLAMABAD – Pakistan’s new government is set to introduce Voluntary Pension Scheme from the start of the next Fiscal Year in bid to ease the burden of complex and outdated government pension system.
The initiative will change the existing traditional pension setup on demand of International Monetary Fund (IMF).
The newly recruited government employees will be awarded voluntary pension scheme from July 1, while government employees who joined in previous years will be given a pension from the official budget. Authorities linked transferring of employees to a new pension schemes with their consent.
Meanwhile, the Securities and Exchange Commission of Pakistan (SECP) has developed a comprehensive strategy for new recruits, and suggested implementation in private sector as well.
Employees will receive voluntary pensions instead of the government pension scheme. Existing employees may also be transferred to the new scheme after their consent.
The motive aims to provide a stable income to all government employees upon retirement, unlike the Provident Fund or gratuity facilities offered in the private sector, with financial security being in focus.
As of early 2024, 43 pension funds are being established across the country of 240 million, with investment in these funds touching 61 billion rupees.
KP government started investing in pension funds two years back, with 21 funds serving its employees. Punjab government will follow suit to introduce voluntary pension scheme for its employees.
Pakistan notifies increase in pensions for retired govt employees
