In a significant policy shift, the Balochistan government has moved to a contributory pension system, marking another step in Pakistan’s ongoing pension reforms. The Securities and Exchange Commission of Pakistan (SECP) confirmed that seven pension funds for the province have been approved, while similar transitions are already underway in other regions.
According to the SECP, the newly approved pension funds will operate under licensed fund managers, ensuring professional handling and transparency in the system. The move is part of a broader effort to restructure how pensions are financed in the public sector.
Under the contributory pension model, both employees and the government contribute regularly to a pension fund, unlike the traditional system where pensions are paid entirely by the state after retirement. Officials say this shift is aimed at making the system more sustainable in the long run.
The SECP also highlighted that Punjab and Khyber Pakhtunkhwa have already adopted the new system, indicating a wider national transition. Meanwhile, work is ongoing to finalize similar pension frameworks for the federal government and Sindh.
