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Rationalisation of pension schemes

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It is the constitutional obligation of State of Pakistan to provide subsidised education, health, security, justice and basic necessities like clean drinking water to the most deprived sections of society. This is clearly stated in 1973 Constitution. States which invest in development of human resources and cater for welfare of its citizens, are part of the developed world, whilst in the Third World, meagre resources are exclusive domain of its elite, both paid or elected. Only when the State has fulfilled its constitutional obligations to all citizens, should it cater to reasonable post-retirement welfare of employees, who are paid salaries for performing specific duties, which they volunteered at time of recruitment. This is what is the spirit of our constitution and Islamic jurisprudence as far as the concept of welfare is concerned.

State laws and regulations must be based on accepted norms and ethics, that are universally adopted and which every religion stresses upon. The principle of conflict of interest is as much an Islamic concept of good governance, stressed upon by Hazrat Abu Bakr (RA) and others, as it is a modern ethic. Most of abuses of power, including tax evasion and financial irregularities are because of conflicts of interest of powerful elite at helm. Quaid stressed upon justice and equality, with equal opportunities for all citizens.

He stressed upon this on 11 August 1947, while addressing First Constituent Assembly. Our failure to adopt Jinnah’s vision of a modern democratic welfare state has led to dismemberment in 1971, yet no lessons were learnt. The modern welfare state was reduced to a country besieged by extremists, terrorists, with ethnic and sectarian divides to an extent, that MAJ’s motto of Unity, Faith and Discipline has become an illusion. What happened on 9 May is a culmination of our own makings. Tax evasion is considered a right by few and the state has succumbed to their blackmail. There are generally two type of pension schemes all over the world; One is for state employees funded by tax payers from national exchequer, and the other based on contributions by employers, unions or other organizations for benefit of members. The basic function of state pension schemes for government employees, who have rendered services for an eligible fixed tenure as per laws and regulations, is welfare post-retirement, or in case of early death or resignation etc.

However, this welfare must not be abused by individual beneficiaries, especially when the country is facing an economic crisis and is on verge of default or bankruptcy, surviving on foreign loans to bridge the deficit. No individual beneficiary of pension, funded by tax payers, must be eligible to receive it, if he/she is gainfully employed, or receives pension, or welfare, from any other source, within the country or abroad. Benefit of multiple pensions from the state, becomes an abuse, because it depletes funds which could have been used for more essential purposes and collective welfare of all citizens.

Unconditional eligibility for pension is only justified when the recipient is a member of fund to which he, or his employer etc. has contributed and there is no contribution whatsoever by the tax payers or national exchequer. Former government servants, who have migrated to any foreign country after retirement, where they receive welfare benefits, must no longer be a burden on tax payers of Pakistan, nor beneficiary of any other state subsidized welfare scheme. Similarly, any former state employee, who after having served in any government organization or department, should not be eligible for pension if he/she is gainfully employed anywhere, except those performing honorary services etc.

The concept of welfare, either in the form of pension, or subsidized allotments of plot for building a house, or getting a constructed residence allotted to an individual, becomes an abuse when this concept is violated and multiple benefits extended for commercial profits. Such abuses are no longer affordable.

—The writer is contributing columnist, based in Lahore.

Email: [email protected]

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