ISLAMABAD – The federal government has changed the method to calculate the pensions of retired employees as it introduced latest reforms in the system.
The new changes, which will have an impact on all government employees and pensioners, have been enforced through a notification amid efforts to cut expenditures.
The Pakistani government is being pressed by the International Monetary Fund (IMF) to bring reforms in its financial structure in order to reduce expenses.
What’s the Pensions Notification Says?
The notification, according to reports, stated that pensions of the retired government employees will now be calculated based on the average salary of the final 24 months of their employment.
Furthermore, the retired employees have been barred from withdrawing more than one pension.
However, the new changes in the pension system will not apply to employees who retires from the service voluntarily.
Meanwhile, Finance Minister Muhammad Aurangzeb on Wednesday said Pakistan is well positioned for the first review of its seven billion dollars International Monetary Fund (IMF) bailout programme.
Talking to international media, he said there would be two rounds of talks with the IMF, first technical and then policy level.
The talks between Pakistan and the IMF started on Tuesday in the federal capital.
During the meeting, Finance Minister Aurangzeb briefed the IMF delegation about Pakistan’s economic situation and reforms agenda amid ongoing part of the economic review process.
The sources said that the Green Initiative report, presented by the Ministry of Finance and planning, was also considered during the talks. The IMF delegation was provided with a report on climate change projects under the Green Initiative.
They said that the Ministry of Finance prepared the report at the IMF’s request.
