The Pakistani government has announced significant changes to the retirement and pension scheme as part of the Budget 2024, aimed at reducing the financial burden on the federal government.

The new regulations state that government employees who retire and subsequently rejoin government service will only receive a pension from one department. Previously, they were eligible for pensions from both their previous and current departments.

Furthermore, the pension will now be paid to the family of a pensioner for 10 years after their death, whereas previously, it was only paid for a shorter period.

The government has also clarified that government employees, where both husband and wife are employed, will be eligible for both pensions if one of them passes away after retirement.

PM Shehbaz convinces PPP to ‘not interfere’ with IMF conditions

Pakistan mulls raising retirement age to control pension expenses

PM Shehbaz admits government made budget with IMF

Sources indicate that these changes are a direct response to the growing burden of pension payments on the federal government, which has been contributing to the country’s budget deficit.

The decision to modify the pension scheme is said to be a key objective agreed upon in consultations with the International Monetary Fund (IMF) as part of efforts to reduce the financial burden.