ISLAMABAD: The government has decided to launch a new voluntary pension scheme to meet another key condition set by the IMF, which is likely to start on July 1.
According to government sources, the Voluntary Pension Scheme is aimed at reducing the heavy government pension burden and streamlining the pension system. Instead of the traditional government pension setup, future employees will be recruited under the Voluntary Pension Scheme.
According to Finance Ministry sources familiar with the matter, the Securities and Exchange Commission of Pakistan has formulated a comprehensive strategy for new government recruitment.
Sources added that the new government employees will get voluntary pensions instead of the government scheme. If the existing employees also agree, they can be transferred to the new scheme.
Unlike the existing provident fund or gratuity facilities offered in the private sector, the new pension scheme is designed to provide a steady, stable income to government employees after retirement.
The SECP has proposed the implementation of pension schemes in both the public and private sectors to ensure the financial security of employees during their retirement years.
Sources also revealed that the Voluntary Pension Scheme will enable employees to retain their pension benefits even in the event of a change in employment, ensuring continued financial support after retirement.
At present, 43 pension funds are being established across the country, in which approximately 61 billion rupees have been invested. Sources further said that the Khyber Pakhtunkhwa government had taken the initiative to invest in pension funds two years ago, including 21 pension funds for its employees.
Following this, the Punjab government is also set to launch a voluntary pension scheme for its employees, signaling a wider adoption of the pension reform initiative in various provincial governments.
The decision to introduce a voluntary pension scheme comes as part of the government’s efforts to address concerns raised by the IMF about rising pension costs. The objective of implementing this scheme is to promote financial stability and ensure long-term financial stability in the country.
