ECC approves pension fund creation

A Defined Contributory Scheme for new entrants was approved by the ECC, which was presided over by Finance Minister Muhammad Aurangzeb. Both civilian employees and military personnel will be covered by the program starting on July 1, 2024, and July 1, 2025, respectively.

The Department of Information Technology and Telecommunication’s summary, which proposes to reimburse Rs. 11.13 billion to the Universal Service Fund (USF) in order to cover the budget shortfall, was also approved by the ECC.

The Federal Board of Revenue (FBR) has been granted permission by the ECC to receive Rs. 4,228.429 million in order to settle its debt related to projects that it has received foreign funding for.

A grant of Rs. 2 billion was permitted to settle outstanding liabilities, and the committee approved the Ministry of Railways’ request for further funding.

To clear the Planning Commission’s debt for the 7th Population & Housing Census, an additional sum of Rs. 7.987 billion was approved.

It was also approved to establish the “Risk Coverage Scheme for SMEs” according to another summary of the Finance Division, with the instruction to oversee and assess the program on a quarterly basis.

A number of high-ranking officials from the relevant ministries attended the meeting, including the Governor of SBP, the Dy Chairman of the Planning Commission, the Minister of State for Finance and Revenue, Mr. Ali Pervez Malik, the Minister of Industries and Production Rana Tanveer Hussain, Mr. Musadik Masood Malik, the Minister of Petroleum, Mr. Ahsan Iqbal, the Minister of Power, and the Governor of SBP.

The federal government had already suggested 13 changes to the pension plan as part of the Budget 2024, in an effort to lessen the load on the national exchequer.

Employees will begin receiving a gross pension equal to 70% of their pay two years prior to retirement, citing a copy of the proposed changes to the Government Employees Pension Scheme that have surfaced.

By allowing employees to retire sooner than previously permitted, the modifications include options for voluntary retirement after 25 years of service.

A progressive scale, ranging from 3 percent to 20 percent annually, for pension amount deductions up until age 60 is part of this option.