Govt implements new pension reforms to fulfill IMF condition

ISLAMABAD, Jan 1 (SABAH): Pakistan has fulfilled another condition set by the International Monetary Fund (IMF) by introducing pension reforms for retired federal government employees.

The Ministry of Finance has issued two notifications in this regard. According to the new reforms, retired employees will receive a pension equivalent to their average salary over the last 24 months.

The pension will be annually increased based on the average salary. Additionally, the double pension system has been abolished. If a retired employee returns to work in any institution, they will only be able to receive either their salary or pension, not both.

Furthermore, in cases where both the husband and wife are federal government employees, eligibility for pensions has been clarified.

If the husband takes up a new job after retirement, the pension will only be awarded to the retired wife. If both spouses retire, they will be entitled to separate pensions.

According to officials from the Ministry of Finance, these reforms were introduced based on the recommendations of the Pay and Pension Commission and are aimed at controlling the annual pension bill.