Pakistan

Federal govt considers reducing retirement age by five years

Published by
Digital Desk

ISLAMABAD: The federal government is reportedly mulling a proposal to lower the retirement age for government employees by five years in an effort to reduce the mounting pension burdenon national exchequer.

The proposal to lower average retirement age from 60 to 55 years has been reportedly suggested by the International Monetary Fund (IMF) and still under review with the federal govt weighing its potential financial and legal implications.

As per sources, the prospal is being consider to reduce the pension expenditure, which has surged to alarming levels in recent years. If implemented across all government institutions, it could save up to Rs 50 billion annually.

Currently, government employees are entitled to a pension based on their last drawn basic salary at the age of 60, which have now crossed Rs1 trillion annually.

The government has already introduced a contributory pension scheme for future government employees, but experts argue that a more drastic approach is required to contain the swelling pension bills.

Digital Desk

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