THE discussion in the National Assembly on the issue of pensions once again highlighted the significant disparities that prevail in the existing system, raising concerns about its sustainability. For instance, there are a number of retired judges receiving pensions ranging between Rs1 million and Rs1.5 million. Retired bureaucrats receive around Rs500,000 every month. At the other end of the spectrum, there is a horde of people getting peanuts in the name of pension. This disparity highlights an urgent need for a review of how pensions are calculated at different levels of public service.

The current pension system, designed decades ago, no longer aligns with the economic realities and demographic changes of today. High pensions for top officials contrast sharply with the petty pensions received by lower-ranking employees, creating a system that many view as inequitable and unsustainable.

To address these issues, the government has been for long talking of introducing pension reforms. However, the effective-ness of these reforms depends on their transparency. The National Assembly should publicly disclose the pensions of retired judges and bureaucrats, and other similarly privileged individuals. Transparency is crucial when it comes to gaining public trust and ensuring that the reforms are not only fair, but also perceived as such by the public.

Moreover, these reforms must be part of a broader strategy to overhaul the pension system comprehensively. This could include revising pension formulas, increasing contributions from high earners, and ensuring that all public servants, regardless of rank, receive adequate post-retirement support. The government could also consider establishing an independent pension oversight body to ensure fair implementation and prevent future disparities. By ensuring a fair and equitable pension system, Pakistan will be in a position to better support all its retired employees, promoting a just society.

Gulab Umid
Turbat

Published in Dawn, July 23rd, 2024