IMF concerned about increasing pension burden in Pakistan

ISLAMABAD: The International Monetary Fund (IMF) has expressed concerns about the increasing pension burden in Pakistan, noting that some retired government employees receive more than Rs 1.6 million in pensions, sources said on Thursday.

According to sources, the IMF is particularly worried about the issue of double pensioners. Documents indicate that approximately Rs 1,014 billion will be allocated for pensions in the upcoming 2024-25 budget. Additionally, pensions are expected to increase by 15 percent in the new budget, which will require an extra Rs 122 billion.

The documents also reveal that 95 retired officers in Pakistan receive a monthly pension exceeding Rs 500,000, while 3,081 retired officers receive more than Rs 200,000 per month.

Previously, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, announced significant relief for government employees, including a salary increase of up to 25 percent.

Presenting the 2024-25 budget in the National Assembly, the finance minister proposed a 25 percent salary increase for employees in grades 1-16 and a 20 percent increase for those in grades 17-22.

The budget also includes a proposed 15 percent increase in pensions for retired employees. Furthermore, the minimum monthly wage for workers has been raised from Rs 32,000 to Rs 37,000. Despite financial challenges, Muhammad Aurangzeb emphasized that the government recognizes the difficulties faced by its employees and has taken steps to address them.