Pension reforms introduced by the government of Punjab will play a unique role in reducing financial burden on the province, remarked Punjab Finance Minister Hashim Jawan Bakht.
Elaborating on the reforms in a statement on Thursday, he said that given the current growth rate of pension and salary payments, the government of Punjab would run out of finances in the near future, which would impact development expenditure in the province. “If pension expenditure continues to grow unchecked, it will limit the fiscal space available for development schemes,” he added.
Punjab has begun implementation of pension reforms under which early retirement from government service has been disallowed before the age of 55 years or before the completion of 25 years of service.
Pension reforms are aimed at curtailing pension-related liabilities, which are emerging as a fiscal risk to the province.
The province has introduced pension reforms by amending Punjab Civil Servants Act 1974, while keeping in view the significance and future financial implications of pension payments.
