IMF Raises Concerns Over Pakistan's Escalating Pension Burden

The International Monetary Fund (IMF) has raised concerns about the increasing pension burden in Pakistan, specifically highlighting the issue of retired government employees receiving pensions exceeding Rs 1.6 million and the prevalence of double pensioners in the country.

According to documents, an estimated Rs 1,014 billion is projected to be allocated for pensions in the upcoming 2024-25 budget, with a planned 15 percent increase in pension allocations. This increase will necessitate an additional Rs 122 billion to cover the escalating pension payments.

Notably, a considerable number of retired officers in Pakistan are receiving substantial monthly pensions. For example, 95 retired officers receive pensions exceeding Rs 500,000 per month, while 3,081 retired officers are paid more than Rs 200,000 monthly.

The concerns raised by the IMF regarding Pakistan's pension burden shed light on the need for sustainable pension management practices. As the country grapples with the financial implications of generous pension schemes, it becomes imperative to strike a balance between honoring retirees' contributions and ensuring fiscal responsibility for the future.