November 7, 2023
Pension reform, shift from defined benefit model to defined contributory model
The exponential increase in the pension and its burden on the budget is a central concern for the country. IMF has also been demanding to bring in reforms in different sectors to reduce the fiscal deficit. 541.9 billion rupees, which is how much the federal government of Pakistan alone has spent on pensions as of the year 2022. The underlying Civil service pension of Pakistan was adopted from the British Pension Act 1871. The same was adopted by India after independence but was revised in 2004 when the country introduced contributory schemes. Pakistan also went through some amendments, but the
