Reports indicate that discussions are underway to outline the terms of the next IMF loan program, with a proposal for a voluntary pension scheme mirroring India’s model emerging as a potential solution. The scheme, slated to commence on July 1, aims to enroll all new government hires, while existing employees may opt-in. The Ministry of Finance is spearheading efforts to allocate budgetary provisions for retired government personnel, while the Securities and Exchange Commission has devised a comprehensive plan for new recruits. Notable figures, including banker Muhammad Aurangzeb and Mossadegh Malik, are vying for key positions in the finance ministry, amidst other anticipated cabinet reshuffles. The SECP advocates for the scheme’s extension into the private sector, urging employers to transition from provident funds to sustainable pension schemes. The move aims to secure stable post-retirement income for employees, even amid job changes. With several provinces already onboard, including Khyber Pakhtunkhwa and Punjab, the voluntary pension scheme signals a paradigm shift in retirement planning across Pakistan.
IMF Negotiations Drive Proposal for Voluntary Pension Scheme in Pakistan
