Officials from Pakistan’s Ministry of Finance have stated that the country will obtain a new loan equivalent to 500 million dollars from the Asian Development Bank to implement reforms in the public sector pension system.
According to the officials, the primary objective of the proposed loan is to reform the government pension system and control the rising pension expenditures. The federal government’s annual pension bill has reached approximately 1,055 billion rupees.
The project has been named the “Transforming Public Sector Pension Program,” under which training and awareness programs will be launched for government institutions.
Finance Ministry officials said the plan also includes proposals to strengthen governance and monitoring mechanisms within the pension system to improve transparency and efficiency.
They added that the new reforms are expected to reduce the future financial burden and help build a more sustainable pension framework.
Authorities further stated that preparations are underway to introduce a new and sustainable pension model while improving oversight of the contributory pension scheme.
