The International Monetary Fund (IMF) has asked government for pension reforms of government employees.In preparation for the upcoming round of talks between Pakistan and the IMF at the end of October, the lender has expressed the need for pension reform implementation, according to sources within the Ministry of Finance.
The IMF is specifically pushing for a reduction in the volume of pension funds by introducing reforms in this area, as mentioned by these sources.
Sources within the ministry have pointed out that the pension budget has witnessed a substantial increase of 500% in the last 12 months.
Furthermore, the IMF is advocating for the separation of pensions from the general budget and their transfer to a dedicated pension fund, with the belief that this action could help reduce the deficit, according to their suggestions to economic managers.
Another piece of advice from the IMF is to discourage premature retirement and limit pensioners to receiving only one pension. The IMF argues that retired officers from various departments should not be entitled to separate pensions based on their duties, and this practice of multiple pensions should be brought to an end.