Pensions in Pakistan

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Pensions in Pakistan are retirement benefits and social security payments for eligible workers and civil servants in Pakistan. [1] The country's pension landscape includes statutory contributory schemes for formal employees, voluntary private pension products, civil-service pension reforms and social transfers that affect older people. Coverage is low outside the formal sector and recent years have seen policy changes to expand and reshape provision. [2]

Contents

Overview

Pension arrangements are a mix of statutory, employer-based and voluntary schemes. The Employees Old-Age Benefits Institution (EOBI) provides a basic contributory pension for many private-sector workers in covered establishments. Civil servants historically received defined-benefit pensions but in 2025 the federal government moved to a contributory model for new entrants and provential governments have issued rules for defined-contribution pension schemes. [3] [4]

Coverage

Most pension coverage in Pakistan is limited to formal sector workers who are covered either by employer schemes or by EOBI [5] . The informal sector, which accounts for the majority of employment in Pakistan, remains largely outside formal pension coverage, leaving many older people without contributory retirement income. [6]

Normal pension age under earnings-related private sector arrangements is generally 60 for men and 55 for women with a minimum period of contributions (typically 15 years), according to the OECD overview for the Asia/Pacific region. [7]

Pension Funds and Schemes

* Contributory Pension Fund Scheme
This scheme is for all government employees. [8]

* Voluntary Pension Scheme
This scheme is for all Pakisanis. [11]

References

  1. ↑ Directions for Pensions in Pakistan. Social Security, Pensions & Retirement Income eJournal. Social Science Research Network (SSRN). Accessed 7 February 2021.
  2. ↑ "Pension and Social Security Schemes in Pakistan: Some Policy Options" (PDF). Pakistan Institute of Development Economics. Retrieved 8 October 2025.
  3. ↑ "List of Authorized Electronic Money Institutions (EMIs)" (PDF). State Bank of Pakistan. Retrieved 8 October 2025.
  4. ↑ "Pension shake-up: Finance ministry enforces new ..." Dawn. 4 August 2025. Retrieved 8 October 2025.
  5. ↑ Pension and Social Security Schemes in Pakistan: Some Policy Options by Naushin Mahmood & Zafar Mueen Nasir (Pakistan Institute of Development Economics) - 2008
  6. ↑ "EOBI Pension Scheme is contributory and narrow in coverage". The Express Tribune. 24 April 2024. Retrieved 8 October 2025.
  7. ↑ "Pakistan: Pensions at a Glance Asia/Pacific 2024". OECD. Retrieved 8 October 2025.
  8. ↑ "Introduction of contributory pension fund scheme fcr the new entrants" (PDF). Archived from the original (PDF) on 2024-11-03.
  9. ↑ https://finance.punjab.gov.pk/system/files?file=Punjab%20Defined%20Contribution%20Pension%20Scheme%20Rules%2C%202025.pdf%5B%5D
  10. ↑ "Government of KP". Archived from the original on 2023-02-14. Retrieved 2025-07-24.
  11. ↑ "Voluntary Pension Schemes | MUTUAL FUNDS ASSOCIATION OF PAKISTAN". www.mufap.com.pk. Retrieved 2025-07-24.


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