Abdul Ghani

The Ministry of Finance, in collaboration with the Controller General of Accounts (CGA) and the Accountant General Pakistan Revenues (AGPR), has undertaken a series of initiatives aimed at improving the pension system for overseas Pakistani retirees, according to a document available with Wealth Pakistan.

The document reveals that the government is addressing longstanding issues related to pension disbursements, data integration, and logistical challenges, ensuring that pensioners residing abroad receive their benefits without delay. One of the key challenges identified by the Finance Division is the difficulty in linking the data of autonomous bodies with the AGPR system.

This has created delays in processing pensions and General Provident Fund (GPF) contributions for employees on deputation. Civil servants working in autonomous bodies have their own pension contribution mechanisms, which are not always integrated with the AGPR system, leading to discrepancies in pension transfers. To tackle this, the Finance Ministry has outlined plans to create a more robust system to track the pension history of civil servants and ensure that their contributions are properly transferred.

Furthermore, the issue of pensions for employees from abolished or merged entities has been a major concern. While some pensioners have received their benefits without difficulty, those nearing retirement or approaching the age of superannuation have faced delays in leave encashment and GPF withdrawals. The Finance Division has stressed the importance of prioritising these cases during the transition period and ensuring that pensioners’ rights are safeguarded.

Many of Pakistani retirees living abroad have encountered difficulties opening bank accounts in Pakistani rupees to receive their pensions. According to the State Bank of Pakistan, pensioners must open new bank accounts to continue receiving payments, and biometric verification is mandatory for pensioners living overseas to ensure the validity of their pension claims.

The verification process, including proof of life certificates, has been a major hurdle for many, especially those living in remote areas without easy access to bank branches. To resolve these issues, the National Database and Registration Authority is developing an online platform to facilitate biometric and facial recognition verification. This system will allow overseas pensioners to submit proof of life certificates remotely, thus eliminating the need for travel to Pakistan for physical verification.

The platform will not only ease the burden on pensioners but also ensure the timely disbursement of pensions. The system is currently under development, with plans to launch it in the near future. In addition to these technological advancements, the Finance Ministry has also instructed the SBP to work closely with banks to synchronise their systems and implement the proposed online application, ensuring the smooth flow of pension payments to overseas retirees.

This collaborative effort between the Finance Ministry, SBP, NADRA, and AGPR aims to improve the efficiency and transparency of the pension system, particularly for retirees living abroad, ensuring that they receive their benefits without unnecessary delays. These reforms are part of the government’s broader efforts to modernise the public sector pension system and provide better services to Pakistan’s pensioners, regardless of their location.

Credit: INP-WealthPk