ISLAMABAD: The government has increased the pensions of retired officials by 15 per cent in the new budget, whereas the minimum wage has been raised to Rs37,000 per month.

Finance Minister Muhammad Aurangzeb revealed during his budget speech on Wednesday that Rs1.014 trillion has been allocated to cover pension expenses. He highlighted the government’s efforts to reform the pension system to address the unfunded pension liability, which amounts to trillions of rupees.

Mr Aurangzeb emphasised the urgency of controlling the rising pension expenses, which necessitated the introduction of reforms.

He said a three-pronged strategy, in line with international best practices, is being implemented to reduce the pension liability over the next three decades.

Published in Dawn, June 13th, 2024