AFTER discontinuing the traditional pension scheme for the Government employees to be hired in future, the Federal Government, on Wednesday issued further notifications to reduce several pensionary benefits for the existing employees and pensioners as per its commitment with the global lenders, especially the International Monetary Fund (IMF). The Finance Ministry issued three notifications envisaging discontinuation of multiple pensions, reduction in the first home take pension and lowering the baseline pension for the purposes of annual increase on pension. There will be no compounding of the annual increases which would be treated separately from the base pension.
This was the logical conclusion of the intensive propaganda campaign launched both by the Government and some other circles against pensions and pensionary benefits portraying them as a burden on the national exchequer rather than treating them as social obligation of the Government towards senior citizens, orphans, widows and those who have no bread-earner and depended entirely on pension. The successive governments have been raising slogans to transform Pakistan into a welfare state on the pattern of Scandinavian countries but easily forget the reality that these countries have, among others, a secure pension system ensuring income in old age besides generous unemployment benefits, free or low-cost access to quality healthcare services to all citizens, regular financial assistance to families with children and benefits for individuals with disability. Some reforms in the pension system are understandable but others are totally uncalled for and there are apprehensions that abolition of the pension itself and drastic reductions in benefits will severely affect the overall performance and delivery by the civil service as well as defence personnel. Pensions were the biggest loyalty factor for employees with the cause of selfless public service and snatching of this incentive has the potential to push them towards illegal and immoral practices to amass enough money to secure their own life and that of their own children in the old age. It is rightly argued that the reforms that the Government has initiated because of the surging pension bill, which has reached to Rs.1 trillion – the fourth largest expense in the budget. However, instead of chopping the pensionary benefits, the Government should have explored ways and means to raise necessary resources for affording opportunity to the vulnerable segments of the society to have a decent life.
