No state pension for new employees from next fiscal

Public sector employees hired from the next fiscal year onward will no longer be eligible for state-funded pensions upon retirement, as part of significant pension reforms, Finance Minister Muhammad Aurangzeb announced on Wednesday. Speaking to the media on the sidelines of 'The Future Summit - What Matters Now,' Aurangzeb explained that, under the reforms, employees will contribute from their monthly salaries to build their own pension funds. He projected a 12% growth in workers' remittance inflows, expecting overseas Pakistanis to send home $34 billion in the current fiscal year 2024-25, compared to $30.25 billion received last fiscal year. The minister emphasized that the private sector must drive the country's economic growth and development, noting that this shift is beneficial for sectors where the government has reduced its involvement.