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