ISLAMABAD – Government employees will only be able to receive a single pension as the new policy takes effect, enforcing ban on officials and employees receiving double pensions.
The latest move comes as part of the coalition government’s effort to streamline public sector pensions at directions shared by the International Monetary Fund (IMF).
Pension Reforms
A notification has also been issued in this regard, implementing a ban on government employees and officials receiving more than one pension. The tweaks in pensions aim to eliminate unnecessary financial burdens on the national treasury. The reforms are expected to save billions of rupees annually, contributing to more efficient use of public funds.
Furthermore, the incumbent government implemented several other pension reforms, including automating pension increments through computerized methods, replacing previous manual procedures and ensuring that over 0.3 million pension records are now digitized.
The recent changes are part of broader pension system reforms, which will now also base pension calculations on last 2-year of service. Pay and Pension Commission will review the basic pension every three years, ensuring that the system remains efficient and sustainable.
These tweaks are said to be key step towards enhancing fiscal discipline and ensuring the long-term viability of the public pension system in the country of over 240 million.
