ISLAMABAD: Finance Minister Ishaq Dar told the National Assembly on Sat­u­­rday said the govern­m­ent had implemented various reforms in the pensions scheme. One decision is to eliminate multiple pensions, ensuring that a government official will recei­­ve only one pension for officials in Grades 17 and above in the first phase.

Besides, when calculating the pension amount, the ad hoc pension allowance will be included as part of the net pension wi­­thout compounding. The pensioner will opt for the highest amount of pens­ion. He said that high-profile people in Pakistan are currently receiving multiple pensions. “I know people receiving three pensions,” Mr Dar said.

Furthermore, the pension will be available for dependents for 10 years after the death of the pensioner and their spouse.

If someone in Grade 17 and above is employed aga­in, they will need to decide between receiving a salary or a pension, Mr Dar said.

He said the federal government would have to introduce a contributory pension fund to control pension expenditures, which he said had become unsustainable.

The KP government has already introduced refor­­ms in pensions, including contributory pensions for new employees.

He said the federal government had created a pension fund for the year 2023-24. The rules and procedures for the fund would be finalised soon, he said. Moreover, austerity measures would continue in the year 2023-24.

Published in Dawn, June 25th, 2023