Pensioners in Pakistan to go through verification to receive funds

The federal government of Pakistan is preparing to launch a nationwide NADRA-linked mobile verification system for pensioners, in what officials describe as a major step toward modernising public-sector payments and reducing fraud.

The proposed system will link pension disbursement to biometric and facial recognition checks conducted through the National Database and Registration Authority (NADRA).

Officials familiar with the plan say around 1.7 million pensioners could eventually be included in the proposed digital verification framework.

How does the new system work?

Under the new mechanism, pensioners would confirm their proof of life status using the Pak ID mobile application operated by NADRA.

Commercial banks would then authenticate pension eligibility through NADRA-integrated systems before monthly pensions are released.

Sources said the State Bank of Pakistan (SBP) has been requested to direct all commercial banks to integrate their infrastructure with NADRA’s verification platforms to enable automated pension validation nationwide.

The system is expected to rely on NADRA’s Proof of Life Certificate (POLC) and Family Registration Certificate (FRC) databases to confirm both identity and pension eligibility.

Banks across Pakistan would also be required to integrate with NADRA’s “Nishan Pakistan” API system and the e-Sahulat platform to allow real-time verification before payments before pension disbursement.

Officials say some elements of the policy have already been implemented, although technical integration between banks and NADRA systems is still under way.

Officials believe the move could streamline pension administration by reducing manual paperwork, improving transparency, and ensuring payments are made only to eligible beneficiaries.

Officials further stated that approval has also been sought from the Finance Division for a revised financial model under which NADRA may waive or reduce certain charges related to the Proof of Life system through optimized integration of POLC and FRC services.

Authorities believe the program would become one of Pakistan’s largest digitally integrated pension authentication systems by combining biometric verification, facial recognition, banking integration, and centralised national identity databases.