Current Pension Payment System Massive Burden on Economy, Finance Minister Told

The Chairperson of the Pay and Pension Commission, Nargis Sethi, called on the Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar, at the Finance Division today. The Finance Secretary also participated in the meeting.

The Chairperson briefed the minister about the working of the Pay and Pension Commission to streamline the existing Pay and Pension structure as per the mandate of the commission. She also updated the minister on the consultative process being followed to ensure all the stakeholders are on board in working out a financially viable solution for the disbursement of Pay and Pensions.


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She also added that the current pension payment system is a massive burden on Pakistan’s economy.

Minister Azhar stated that the current model for the disbursements of Pay and Pensions is not sustainable and the salaries, pensions, allowances, perks, etc. need to be rationalized by removing the anomalies to ensure equity.

He stressed that a way forward that is transparent, feasible, and sustainable in the long run must be determined, and extended his full support and facilitation to the commission in this regard.


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The Chairperson also apprised Minister Azhar about the working of sub-committees which have been assigned terms of reference to deliberate and present firmed-up proposals for the harmonization of the Pay and Pension system across the country.

In his concluding remarks, the minister stated that the Pay and Pension Commission has a very challenging task ahead as the employees of the Federal and Provincial Governments are anticipating the recommendations of the commission with hope.


  • Rather than punishing those who have completed their services, govt. should focus on eliminating non performing employees of govt. offices and non performing organisations. Also, the issue of ghost employees and pensioners need to be solved before deciding anything against the deserving pensioners.


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