Ahead of IMF Mission visit and the annual budget, the government is planning to announce pension reforms, finalizing a pension package for universal implementation, which includes raising the age limit for all public servants, such as those in the armed forces, judiciary, and civilian sectors.
Minister for Law, Azam Nazeer Tarar, emphasized that the pension reforms will be universally implemented, affecting all sectors. He explained that relevant acts and constitutional amendments would be introduced and passed to ensure comprehensive implementation across society.
Minister for Finance and Revenues, Muhammad Aurangzeb, disclosed that an IMF mission will visit Islamabad within the next seven to ten days to finalize the details of a bailout package under the Extended Fund Facility (EFF). Aurangzeb mentioned exploring climate financing options after settling the terms of the EFF during discussions with the IMF.
Various proposals, including raising the retirement age to 65, are under consideration by the ministerial committee to streamline expenditures. New entrants may face contributory pension schemes. Atta Tarar stressed that the reforms would apply to all, dispelling rumors of exclusions. He cited increased life expectancy as a reason for considering raising the retirement age across the public sector.
The IMF team’s imminent visit underscores Pakistan’s economic challenges, including budget and current account deficits. The government aims to boost the tax-to-GDP ratio to 14-15% in the medium term by bringing non-filers into the tax net. Exploring international bond markets, including the Chinese market, is on the agenda, with the possibility of launching Panda bonds.
