Government Faces Opposition: Proposal to Raise Retirement Age Halted
The federal government’s proposal to raise the retirement age for government employees has stalled due to strong opposition from influential and relevant circles. The proposal aimed to increase the retirement age from 60 to 62 or 63 years but has faced significant resistance.
Opposition to Retirement Age Increase
Sources reveal that the proposal to raise the age limit for public sector employees, including civilians, military personnel, and judiciary officials, is currently not being implemented. Before such a proposal can be finalized, additional preliminary work is necessary. However, pension reform proposals are still on the table.
Pension Reforms and Ministry Restructuring
The federal government is also planning to phase out ministries whose responsibilities have been delegated to provincial governments. Efforts are underway to persuade provinces to share the burden of social protection measures such as the Benazir Income Support Program.
Additionally, the government has reduced the Public Sector Development Program (PSDP) budget to 1400 rupees, cutting 250 billion rupees from it. Despite this reduction, the volume of public-private partnerships for development projects has increased from 100 billion rupees to 350 billion rupees. It remains to be seen how the government will handle the allocation of funds for the Higher Education Commission to rationalize expenses.
Formation of High-Powered Committee
To address unchecked government expenditures, a high-powered committee chaired by Finance Minister Muhammad Aurangzeb has been formed. This committee aims to rationalize government spending and was expected to finalize its findings before the budget announcement. However, progress has been slow, with the last meeting held just last Monday. The committee is mandated to finalize its recommendations by the end of July or the first week of August, with an official announcement expected around August 14.
Pension Reform Proposals Still Intact
Senior government sources confirm that while the proposal to raise the retirement age has faded, other pension reform proposals remain intact. One significant change under consideration is the abolition of the clause allowing pensions for multiple generations.
Government’s Plan for Pension Reforms
On May 7, 2024, three federal ministers, including those of Law, Finance, and Information & Broadcasting, presented a plan to finalize the pension package. This plan also included a proposal to extend the age limit for military, judicial, and civilian government employees.
When asked whether the age limit for the Army Chief and Chief Justice of Pakistan would increase with the pension reforms, Law Minister Azam Nazeer Tarar stated that the reforms would apply universally.
Conclusion
The proposal to raise the retirement age for government employees has hit a roadblock due to opposition from powerful circles. However, the government continues to push for pension reforms and other cost-cutting measures to rationalize public spending. The coming months will be crucial as the high-powered committee works to finalize its recommendations.
Stay tuned for more updates on the government’s efforts to implement these critical reforms and their potential impact on public sector employees.
