Islamabad: Finance Minister Ishak Dar said in parliament on Saturday that the government had implemented various reforms in the pension system. One of the decisions is to abolish multiple pensions and ensure that civil servants receive only one pension of grade 17 or above in the first phase.
In addition, when calculating the pension amount, the temporary pension provision is included as part of the net pension without compounding interest. Pensioners will choose the highest pension. He said Pakistani celebrities now receive multiple pensions. “I know someone who has three pensions,” Dahl said.
In addition, after the death of the pensioner and his spouse, dependents are also entitled to pensions for 10 years.
Dahl said that if 17th graders and above are rehired, they will have to decide whether they will receive a salary or a pension.
He said the federal government needs to introduce contributory pension funds to control pension spending, but that has become unsustainable.
The KP government has already introduced pension reforms, including a contributory pension for new hires.
He said the federal government had created a pension fund for 2023-24. He said the fund’s rules and procedures will be finalized soon. Further austerity measures will continue in 2023-24.
Posted at Dawn on June 25, 2023
