The government has disclosed its strategy to finalize a comprehensive pension package for universal implementation. This initiative includes raising the age limit for all public servants, encompassing personnel from the armed forces, judiciary, and civilian sectors.
Responding to inquiries about potential increases in the age limit for key positions such as the Chief of Army Staff and Chief Justice of Pakistan following the pension reforms, Minister for Law Azam Nazeer Tarar emphasized the broad applicability of the reforms. He explained that during the implementation phase, relevant legislative acts, including the Army Act and constitutional amendments, would be introduced and passed to ensure inclusivity across all segments of society.
Minister for Finance and Revenues Muhammad Aurangzeb revealed that an IMF mission is scheduled to visit Islamabad within the next seven to ten days to finalize the key aspects and size of the bailout package under the Extended Fund Facility (EFF). Aurangzeb elaborated that discussions regarding climate financing would follow after determining the size and duration of the EFF during the forthcoming negotiations with the IMF. This announcement was made during a joint news conference with Minister for Information & Broadcasting Atta Tarar and Minister for Law Azam Nazeer Tarar at the PTV headquarters auditorium.
Various proposals are under consideration to streamline the pension package with the aim of reducing expenditures. One proposal being deliberated by the ministerial committee is to raise the age limit from 60 to 65 years, alongside the introduction of a contributory pension scheme for new entrants. The pension bill currently stands at approximately Rs801 billion at the federal level. Atta Tarar emphasized that the pension reforms would be all-encompassing, dispelling rumors of exclusions. He cited increased life expectancy as a rationale for proposing an age limit adjustment for all public sector employees and reiterated that no institution would be exempt from the reform plan.
Addressing concerns about judicial activism in light of recent apex court decisions, Minister for Law reiterated the principle of a minimum five-member bench for constitutional interpretation. He acknowledged discussions regarding changes in the process of appointing judges to the superior judiciary, highlighting concerns over the diminishing role of Parliament.
Regarding the failure of the retailer registration scheme, the minister affirmed the government’s commitment to enforce existing laws and implement systems such as Point of Sale and Track and Trace effectively. He stressed the necessity of digitization for enhancing tax revenues, emphasizing the unsustainable nature of a low tax to GDP ratio. The minister underscored the importance of broadening the tax base and outlined plans to increase the tax to GDP ratio to 14-15 percent in the medium term. Additionally, he mentioned the government’s intention to explore international bond markets and potentially issue Panda bonds in the Chinese market.
