ISLAMABAD: A proposal to lower the retirement age to 55 for civilian government employees has been presented to Prime Minister Shehbaz Sharif, according to sources within the Ministry of Finance.
The move, still in its preliminary stages, could significantly impact the country’s bureaucracy if implemented.
The proposal aims to streamline pension liabilities and improve efficiency within government departments. However, initial feedback from the Prime Minister and senior officials suggests resistance to the plan, with many bureaucrats opposing the idea of retiring at 55.
Various media reports revealed that the International Monetary Fund (IMF) has also pressed Pakistan to reform its pension system by including current employees in the contributory pension scheme—a move already applied to new recruits. The Ministry of Finance is reportedly examining ways to meet this demand as part of broader economic adjustments under IMF guidelines.
Meanwhile, discussions are underway to address longstanding issues such as the Federal Secretariat allowance, which has remained frozen for over a decade. The Ministry of Finance is reviewing proposals to reinstate or adjust this allowance as part of efforts to improve employee compensation.
The Prime Minister has yet to take a final decision on the retirement age proposal, which, if approved, could trigger a wave of retirements across the bureaucracy. This potential reform adds to a series of measures under consideration to address fiscal challenges and modernize Pakistan’s public sector workforce.
