Govt employees protest pension reforms in Federal capital

ISLAMABAD: Hundreds of government employees presented protests in Islamabad on Wednesday to denounce the pension reforms introduced that they said could deny them financial security.

They gathered at Secretariat Chowk, blocking both entrances to the government secretariat, along with a large contingent of police, including senior officers who were deployed to control the situation.

The employees have called for an ascent to what they call discriminatory policies, including the abolition of dual pensions and revision of the pension calculation formula. They have repeatedly called for a 10% increase in disability allowance.

Arguing that these reforms, which went effective from January 1, 2025, will cut back financial liabilities and align Pakistan with international fiscal standards, the government has taken the issue to heart.

Under the new arrangements, pensions will be assessed on the salary average of the last two years instead of the last salary drawn.

The authorities maintain that the new rules will help save billions annually, but protesters say they unfairly burden retirees dependent on government support. Protests may continue as negotiations stall.

Pension reforms are not the only demands made by the global organization. The IMF also wants the civil services to explain the status of its officers when discrepancies are found in their declaration of assets.

The global lender has sought a risk-based verification of the disclosures made by civil servants and possible penalties against officers, including investigations on those whose assets surpass declared sources of income.

However, it is estimated that with the limited scope defined by the civil service classification, hardly 25,000 civil service assets would be revealed after an amendment of the Civil Servants Act demanded by the IMF as part of the $7 billion package.

In other words, the officers of autonomous bodies, regulatory authorities like the SBP, Nepra, Ogra, and PTA, and provincial civil services will still be exempted from digitally filling their returns and disclosing them publicly.

Most of the decisions are made by public servants in these organizations, which are reflected indirectly in the numbers and audit objection values issued by the Auditor General of Pakistan.

The delegation also held discussions with the Establishment Divisions regarding promotions, postings, and accountability of civil servants serving in grades 17 to 22. The emphasis of the delegation was in addition to the disclosure of information and concrete action.