ECC Approves Overhaul of Pension Scheme on Pay and Pension Commission's Advice
ISLAMABAD: In a pivotal move aimed at restructuring Pakistan's pension landscape, the Economic Coordination Committee (ECC) has greenlit sweeping changes to the pension scheme based on recommendations from the Pay and Pension Commission. Chaired by Finance Minister Muhammad Aurangzeb, the ECC's decision marks a significant step towards modernizing the country's pension system.
Effective from July 1, 2024, the approved amendments introduce a contributory pension scheme for incoming employees while ushering in revised regulations for current pensioners. Notably, the ECC also endorsed the establishment of a dedicated pension fund for existing retirees, underscoring a commitment to ensuring financial security in retirement.
Furthermore, the ECC sanctioned supplementary grants for several ministries, highlighting continued governmental support amid evolving economic dynamics. As the reforms take shape, stakeholders await further details on the federal government's forthcoming regulations governing pension funds.
This move is poised to set a precedent in enhancing fiscal sustainability and equitable pension provisions across Pakistan, reflecting a proactive approach towards comprehensive economic reform.
