Ishaq Dar makes important announcement for pensioners

ISLAMABAD: Federal Minister for Finance and Revenue Ishaq Dar on Saturday made an important announcement for pensioners, saying that pensions from multiple sources were being abolished, ARY News reported.

“The government has started introducing pension reforms in the budget for fiscal year 2023-24,” the finance minister said while winding-up general discussion on the budget in National Assembly.

Ishaq Dar noted that pensions from multiple sources were being abolished while all officers from Grade 17 and above will get one pension only.

“After the death of a pensioner, their heirs will receive the pension for 10 years,” he said, adding that a government officer will be able to receive a salary or pension from one institution.

“On working in another organisation, the facility of either a salary or pension will be allowed,” the minister added.

Meanwhile, the finance minister noted that the government has introduced a number of changes to its fiscal 2024 budget in a last-ditch effort to clinch a stalled rescue package with the international lender.

For the fiscal year starting next month, the federal government will raise a further Rs215 billion in new tax and cut Rs85 billion in spending, as well as a number of other measures to shrink fiscal deficit, he said.

The federal minister made it clear that this reduction would have no impact on the proposed development budget, the raise in salaries and pensions of the federal government employees.

The review came a day after Prime Minister (PM) Shehbaz Sharif met with IMF Managing Director Kristalina Georgieva on the sidelines of the Global Financing Summit in Paris.

During the meeting, the two exchanged views on the ongoing programs and cooperation between Pakistan and IMF. Recalling their recent telephone conversation on 27 May 2023, the premier apprised Ms. Georgieva of Pakistan’s economic outlook.

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Shehbaz Sharif outlined the steps taken by the Government for economic growth and stability. He underscored that all prior actions for 9th Review under the Extended Fund Facility had been completed and the Government of Pakistan was fully committed to fulfilling its obligations as agreed with the IMF.