Pension reform plan on the cards

LAHORE, (APP - UrduPoint / Pakistan Point News - 5th Jun, 2026) The Punjab government has prepared a comprehensive pension reform plan to control the rising pension expenditure and reduce the financial pressure on the government exchequer, under which trillions of rupees are expected to be saved in the coming years.

According to official sources, the Punjab government is expected to save Rs 58 billion in the year before the implementation of the new pension model, while on a long-term basis, more than Rs 2.7 trillion will be saved over 30 years.

According to government estimates, the current pension reforms are expected to save about Rs 2.9 trillion over the next 10 years. In addition, the delay in commutation payments will also postpone an additional financial burden of about Rs 100 billion.

The reform plan aims to reduce the total pension liabilities from Rs 11.9 trillion to Rs 5.7 trillion, which is expected to further strengthen the province’s financial position.

The government is working on various fiscal strategies to reduce the growing pension burden, while reducing pension expenditure has been included among the key priorities of the new fiscal year.

Officials say the proposed reforms aim to ensure effective use of government resources, promote fiscal discipline and make the pension payment system sustainable in the future.