ISLAMABAD – The Federal government is mulling options to extend retirement age to 65 years, Finance Minister Muhammad Aurangzeb revealed on Tuesday.
The Finance Minister said, “the discussions are underway regarding the possibility of increasing the retirement age as a measure to manage the pension load,” said Mr. Aurangzeb while addressing a press conference in Islamabad on Tuesday. Law Minister Azam Nazeer Tarar and Information Minister Attaullah Tarar were also present there.
Aurangzeb, drawing from his background in banking, underscored the financial strain posed by pensions.
The Finance Minister said, “pensions are significant liabilities,”.
He emphasized upon extending the retirement age, citing productivity during later years as beneficial for the economy.
Addressing the broader economic context, Aurangzeb hinted at impending structural reforms, coinciding with preparations for a forthcoming International Monetary Fund bailout package.
He stressed the importance of stabilizing the economy and fostering investor confidence.
Law Minister Tarar echoed Aurangzeb’s sentiments, affirming the intention for comprehensive pension reforms affecting various sectors. He acknowledged the need for legislative action and the establishment of a committee to oversee the process.
Similarly, Information Minister Attaullah Tarar characterized pensions as a financial obstacle, emphasizing the government’s obligation to address the issue uniformly across institutions.
