In a major pension reform, Pakistan’s Finance Minister Muhammad Aurangzeb announced that public sector employees hired from the next fiscal year onward will not receive state-funded pensions. Instead, these employees will need to contribute part of their monthly salaries toward private pension funds.
This change is expected to help cut government spending, currently at Rs800 billion to Rs1 trillion annually, or about 1% of Pakistan’s GDP.
Also Read: State Pension Scheme Ends for New Employees Starting Next Fiscal
At The Future Summit – What Matters Now, Aurangzeb highlighted other economic strategies, including a 12% projected increase in remittances, with overseas Pakistanis expected to send $34 billion in FY 2024-25. He also noted potential improvements in Pakistan’s credit rating from major agencies.
Aurangzeb stressed the importance of addressing population growth, advocating for investments in health, education, and climate resilience to strengthen Pakistan’s human capital.
