IMF raises concerns over Pakistan's pension burden in budget 2024-25

ISLAMABAD: The International Monetary Fund (IMF) has raised concerns regarding the raising pension burden in Pakistan as some retired government employees in the country receiving more than Rs 1.6 million in pension, ARY News reported on Thursday, citing sources.

Sources close to the development disclosed that the IMF is worried about the issue of double pensioners. According to documents, an estimated Rs 1,014 billion will be allocated for pensions in the upcoming budget 2024-25.

The documents further reveal that pensions will see a 15 percent increase in the new budget, requiring an additional Rs 122 billion to cover this increment.

Notably, the monthly pension for 95 retired officers in Pakistan exceeds Rs 500,000, while 3,081 retired officers receive more than Rs 200,000 per month.

Earlier, the Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb announced ‘significant’ relief for government employees, increasing their salaries up to 25 percent.

Presenting the budget for the fiscal year 2024-25 on the National Assembly floor, the finance minister said that the government proposed to raise salaries by 25 percent for grade 1-16 employees and a 20 percent increase for grade 17-22 employees.

In the budget, the finance minister also proposed a 15 percent increase in pensions for retired employees. The minimum monthly wage for a worker has been raised from Rs 32,000 to Rs 37,000.

Muhammad Aurangzaib said that despite financial difficulties, the government acknowledged the hardships faced by its employees and has taken steps to address them.