Currently, Pakistan is going through difficult economic conditions. All of the current economic policies in Pakistan are influenced by the IMF.
In a significant milestone, the government has confirmed its resolve to avoid an increase in salary and pension beyond those specified in the fiscal year 2024 first quarter (Q1).
This commitment is consistent with the Memorandum of Economic and Financial Policies, which was agreed upon with personnel from the International Monetary Fund (IMF) at the first review of the Stand-By-Arrangement.
So the decision of no increase in pensions is also due to the agreement with the IMF. These latest developments caused irks in many ex-government employees.
The relevant documents were provided on Sunday, revealing insight into the government’s fiscal responsibility position.
Despite this vow, government clerks staged a protest on January 18, 2024. The clerks proposed a 10% increase in the disparity reduction allowance and a 70% increase in medical, transportation, and housing allowances for grades 1–16.
Also Read: Revamped Government Pension Scheme Enhances Financial Security
According to the Business Recorder, the Chief Coordinator of the All Government Employees Grand Alliance (AGEGA) expressed the alliance’s opposition to pension changes and the implementation of disparity allowances for employees in grades 1-16.
The Chief indicated that the Finance Division has submitted a summary of pension revisions, requesting feedback from the Establishment Division, Ministry of Interior, and Law and Justice Division on the proposed changes.
According to the proposed modifications, federal government employees would be entitled to a gross pension equal to 70% of the average pensionable emoluments earned for the previous thirty-six months of employment before retirement, plus penalties for early retirement.
The plan also states that an employee may choose early retirement after 25 years of service, subject to a 3% decrease in gross pension from the retiring year until the age of superannuation.
Family pensions, upon the death or disentitlement of the spouse, would be available to the remaining eligible family members for a maximum of ten years. In the event of the Shuhada Pension, family members’ eligibility would be extended for 20 years following the spouse’s death or disentitlement.
Furthermore, if a pensioner has disabled or special needs children, the family pension will be available to them for the rest of their lives.
Another important feature allows federal government employees to commute up to 25% of their gross pension at the time of retirement, as opposed to the current 35%, subject to the terms and circumstances specified by the federal government.
