IMF Expresses Worries about Pakistan’s Pension Liabilities in the 2024-25 Budget

News Desk5 days ago

According to people familiar with the situation, the IMF is concerned about the problem of duplicate pensioners. The forthcoming budget for 2024–25 is expected to include Rs 1,014 billion for pensions, according to papers.

The documents also show that the new budget will increase pensions by 15%, meaning an extra Rs 122 billion will be needed to pay for this rise.

Remarkably, 3,081 retired officials in Pakistan receive more than Rs 200,000 per month in pension, while 95 retired officers in Pakistan receive more than Rs 500,000 per month.

Prior to this, Senator Muhammad Aurangzeb, the federal minister of finance and revenue, offered “significant” relief for public servants, raising their pay by up to 25%.

The finance minister announced during the presentation of the budget for the fiscal year 2024–25 on the floor of the National Assembly that the government intended to increase pay by 20% for grade 17–22 personnel and by 25% for grade 1–16 employees.

The finance minister also suggested a 15% raise in pensions for retired workers in the budget. A worker’s minimum monthly salary is now Rs 37,000 instead of Rs 32,000.

Read more: IMF Demands Hit Pakistan Development Budget

Muhammad Aurangzaib stated that the government recognized the struggles its workers faced and has taken action to solve them, even in the face of financial constraints.

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