ISLAMABAD: Finance and Revenue Minister Ishaq Dar clarified on Sunday that civil servants falling in the BPS 17-22 category would not receive double pensions.
In response to Minister for Water Resources Syed Khursheed Ahmed Shah’s point raised in the National Assembly, Dar explained that the restriction would not apply to government employees below BPS-17.
This exemption was necessary as some civil servants retired after 15-20 years of service and started another job.
Dar said if retired civil servants in grades 17-22 were working on a contract basis, they would have to choose one pension that suited them, as per the policy that started from the top.
He emphasised that this issue should have been resolved earlier, and the government has taken steps to address it.
Regarding pension payments to dependents of retired employees and widows, he mentioned that there was no specific timeframe, but it has now been limited to 10 years.
He highlighted the importance of these reforms due to the rising pension budget, which has reached Rs800 billion. This figure is nearly 50 percent less than in previous years. Dar warned that without these reforms, the pension system would become unsustainable for the country.
In response to concerns raised by Ghous Bux Khan Mahar of the Grand Democratic Alliance (GDA) regarding the withdrawal of the urea subsidy, the minister explained that the government aimed to promote local fertilizer production and achieve self-sufficiency in this sector.
He noted that several local companies were planning to invest over $200 million in urea production.
Dar assured the House that the challenges faced by the agriculture sector, considered the backbone of the national economy, would be addressed through mutual consultation with all stakeholders in due course of time.
