Pakistan is planning to obtain a $500 million loan from the Asian Development Bank to implement reforms in its public sector pension system, according to officials from the Ministry of Finance Pakistan. The proposed initiative, titled “Transforming Public Sector Pension Program,” aims to address the rapidly increasing pension burden on the federal government. Officials stated that the annual pension bill has risen to approximately 1,055 billion Pakistani rupees, creating significant fiscal pressure. The new loan will support reforms designed to control pension expenditures and introduce a more sustainable and transparent pension framework.
As part of the program, the government plans to launch training and awareness initiatives for public sector institutions and strengthen governance and oversight mechanisms within the pension system. Finance Ministry officials believe these reforms will help reduce long-term financial liabilities and modernize the pension structure. The government is also preparing to introduce a new sustainable pension model while improving monitoring of the contributory pension scheme to ensure better financial management in the future.
