IMF demands introducing pension reforms: sources

ISLAMABAD: The International Monetary Fund (IMF) has demanded for pension reforms, citing sources ARY News reported on Tuesday.

Preparations have been underway for next round of Pakistan’s talks with IMF in the last week of October. The lender has demanded implementation on pension reforms, sources at the Ministry of Finance said.

The IMF wants reduction in volume of pension funds by introducing pension reforms, sources said.

“The pension budget has increased by 500% in last 12 hours,” sources at the ministry said.

The IMF is demanding separating pensions from budget to move it to the pension fund, in its suggestion to the economic managers. “Separation of pensions from budget can cut down the deficit,” IMF suggested.

“The IMF also advised to discourage premature retirement and pensioners should be allowed only one pension”. Retired officers from different departments should not be allowed separate pensions owing to their duties and this practice of more than one pensions should be ended, IMF said.

Pakistan caretaker government is likely to jack up gas tariff by 100pc on the International Monetary Fund’s (IMF) demand.

According to sources knowing the matter, the IMF demanded an increase in gas tariff from up to 100pc before the next economic review to curtail circular debt in the gas sector.

Sources said the shortfall of Rs185 billion will be added to the circular debt of the gas sector if the gas tariff is not increased. The current circular debt of the gas sector is touching Rs2,700 billion.