Balochistan Introduces Historic Pension Reforms with New Contributory Fund System
Quetta: The Government of Balochistan has introduced major reforms in the pension system for public employees by implementing a new “Contributory Pension Fund System,” aimed at ensuring long-term financial sustainability.
According to a notification issued by the provincial Finance Department, the new system requires both the government and employees to contribute to the pension fund. Under the revised structure, the government will contribute 12% of an employee’s basic salary, while employees will contribute 10%, making a combined total of 22% allocated to the pension fund.
Officials said the primary objective of the reform is to reduce the growing burden of pension liabilities on the provincial treasury and create a sustainable financial model for the future.
Sources further revealed that employees will have the option to contribute more than the mandatory 10% if they wish to secure higher financial benefits after retirement.
The notification clarified that the new policy will mainly apply to newly recruited employees, while those already retired will continue to receive pensions under the existing system without any changes or reductions.
Economic experts have described the move as a significant step toward fiscal stability, although employee unions are expected to seek further consultations and clarity on the implementation of the new model.
