The newly elected Shehbaz Sharif government is set to introduce a voluntary pension scheme from the start of the next fiscal year to ease the burden on the complex and outdated government pension system.
The International Monetary Fund (IMF) requested the change, which will replace the existing traditional pension system. Government employees will receive pensions from the government budget.
Officials have linked the transfer of employees to the new pension schemes with their permission. Meanwhile, Pakistan’s Securities and Exchange Commission (SECP) has devised a comprehensive strategy for new recruiting and implementation in the private sector.
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Employees will obtain voluntary pensions rather than the government pension program. Existing employees may be transferred to the new program with their consent.
The goal is to give a regular income to all government employees upon retirement, as opposed to the Provident Fund or gratuity facilities supplied in the private sector, with financial security being a priority.
As of early 2024, 43 pension funds are being established across the country of 240 million people, with investments totaling 61 billion rupees.
The KP government began investing in pension funds two years ago, with 21 funds serving its employees. The Punjab government will follow suit and implement an optional pension program for its employees.
