• Islamabad’s ECC approves pension fund establishment.
• A defined contributory scheme is set for new entrants as of July 1.
• Technical grants are approved for ministries by the ECC.

Islamabad – The Economic Coordination Committee of the Cabinet has given the go-ahead to establish a pension fund.

The approval was granted during the ECC meeting chaired by Finance Minister Muhammad Aurangzeb in Islamabad.

The committee also agreed to implement a defined contributory scheme for new entrants starting on July 1 this year and for the armed forces starting on July 1 next year.

The ECC also gave approval for technical supplementary grants to several ministries and divisions.

Earlier in June, the federal government proposed a 15 percent increase in pensions for retired employees in the budget for the fiscal year 2024–25.

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Another initiative from the Finance Division, the “Risk Coverage Scheme for SMEs,” was approved, with directions to monitor and evaluate its progress on a quarterly basis.

The Committee also endorsed the Defined Contributory Scheme proposal for new entrants starting on July 1, 2024, and for the armed forces effective on July 1, 2025. Additionally, the ECC approved the Ministry of Information Technology and Telecommunication’s summary to return Rs11.13 billion to the Universal Service Fund (USF) to address the budget deficit.