Pakistan has met another condition set by the International Monetary Fund (IMF) by implementing pension reforms for retired federal government employees.
The Ministry of Finance has issued two notifications in this regard.
Under the new reforms, retired employees will receive a pension based on their average salary over the last 24 months. The pension will be adjusted annually according to the average salary.
Additionally, the double pension system has been discontinued. If a retired employee returns to work, they can receive either their salary or pension, but not both.
The reforms also clarify pension eligibility for couples where both spouses are federal employees. If the husband takes up a new job post-retirement, only the retired wife will receive a pension. If both spouses retire, they will be entitled to separate pensions.
According to Ministry of Finance officials, these reforms were introduced following the recommendations of the Pay and Pension Commission and are designed to help manage the annual pension expenditure.
