Government Implements Pension Reforms to Meet IMF Requirements
The federal government has recently made significant changes to the pension system for government employees, a crucial move to meet demands from the International Monetary Fund (IMF). Effective immediately, government officials and employees are now banned from receiving double pensions, as reported by Express News. This change comes as part of a broader effort to streamline pension calculations and ensure financial sustainability.
Computerised Pension Increments and Reforms
One of the key changes introduced is the automatic inclusion of pension increments through computerised methods, eliminating the need for manual procedures. This shift has resulted in the computerisation of pension records for over 300,000 employees, marking a significant step towards efficiency and transparency in the system. Moreover, the new rules specify that annual pension increments will apply to the first pension only, with future pensions calculated based on the last 24 months of service.
Financial Impact and Future Contributions
These reforms are expected to generate substantial savings for the national treasury annually, as government officials will now be eligible for only one pension. The Pay and Pension Commission will review basic pension rates every three years, ensuring that the system remains fair and sustainable. Finance Minister Muhammad Aurangzeb has confirmed the immediate implementation of the recommendations put forth by the 2020 Pay and Pension Commission.
Prime Minister Shehbaz Launches Economic Initiative
In a separate development, Prime Minister Shehbaz Sharif has unveiled the economic initiative ‘Uraan Pakistan,’ marking a significant milestone in the country’s economic future. Addressing a gathering of senior government officials and ministers in Islamabad, the prime minister emphasized the government’s commitment to stabilising the economy amidst the 2023 financial crisis.
Shehbaz accused opposition forces of hindering the IMF programme, underscoring the government’s unwavering dedication to securing macroeconomic stability despite challenges. “Today is a historic day as we commence the journey of Uraan Pakistan,” he declared, highlighting the coalition government’s efforts to prioritize the nation’s financial well-being over political interests.
