Islamabad: The Finance Ministry is expected to replace the flat lump sum pension increase for retired civil servants with an 80% adjustment tied to inflation over the next two years. This update comes from a news piece on September 12.
As outlined in the details, this move is part of a broader strategy to manage the rising pension burden. Previously, pensions were increased by a flat 15% in the current budget, but future increments will now be linked to inflation, using data from the State Bank of Pakistan (SBP). This shift follows recommendations from the Pay and Pension Commission 2020.
Additionally, the government aims to bring inflation down to single digits by the next fiscal year, while allocating PKR 1,014 billion for pensions in the current financial year.
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Kaif Ali