1. An incredibly important topic flagged by @hasaankhawar. Without fixing Pakistan's pensions structure & it's funding, civil servants of today will impair the State's ability to pay their pensions when they retire.
India fixed this issue 15 years ago.
tribune.com.pk/story/2252564/…
India fixed this issue 15 years ago.
tribune.com.pk/story/2252564/…
2. The scale of the issue. KP's pension bill used to be less than Rs. 1 bln & less than 1% of the budget, just fifteen years ago. Yearly growth of 20% plus means last year, KP paid Rs. 70+ bln in pensions, 16% of the budget.
In a few years, pension payments have increased x80!
In a few years, pension payments have increased x80!
3. Project forward & it gets even more challenging without decisive action.
In 3 years pension payments almost double, & in 10 years pension projections in KP alone would be north of Rs. 500 bln a year. This is the problem every govt in Pakistan, provincial and federal faces.
In 3 years pension payments almost double, & in 10 years pension projections in KP alone would be north of Rs. 500 bln a year. This is the problem every govt in Pakistan, provincial and federal faces.
4. If a pension programme had been instituted in Pakistan as in India, the provincial govt would not have had to include debt in its budget to ensure funding for pensions, as is the case today.
Hence, we will act this year to enact pensions reform.
Hence, we will act this year to enact pensions reform.
