Finance Minister Muhammad Aurangzeb has expressed support for increasing the retirement age from 60 to 62 years, amid growing concerns over unfunded pension liabilities.
During a Senate Standing Committee on Finance meeting chaired by Senator Saleem Mandviwalla, Aurangzeb highlighted that the pension burden had become unsustainable, prompting reforms such as the Defined Contributory Pension system—currently implemented for civilians.
PPP’s Senator Farooq H. Naek proposed the age increase to curb the rising pension bill, arguing that experienced professionals were being lost too soon. “If judges’ retirement age can be extended, why not bureaucrats?” he said. Senator Anusha Rahman backed the idea, suggesting even 65 or 70 as viable retirement ages.
Aurangzeb, citing his banking sector experience, noted a prior decision to raise the retirement age from 60 to 65. However, he cautioned that while the proposal had merit, it wouldn’t significantly reduce pension expenditures, as military personnel—who retire earlier—account for a major share of the pension burden.
Meanwhile, the Ministry of Finance revealed that Rs. 510 billion has been earmarked in the 2025–26 budget for a special package for the Pakistan Army, Navy, and Air Force—up from Rs. 463 billion in the current fiscal year.
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This guy is going to bankrupt the nation
Make the rich pay their taxes and you get your pensions. Social security works.