Govt denies pension in forex

Finance ministry sets Rs37,000 as the minimum salary per month for all civil and contract employees from July 1, 2024.

ISLAMABAD:

The finance ministry said on Thursday that retired government servants living overseas were demanding their pensions in foreign exchange. However, this is not permitted under the rules, and the current economic situation does not allow the government to make such payments.

The ministry issued an explanatory office memorandum regarding the pension rules.

It said that only those employees who were appointed before 1959 were entitled to draw pension in foreign exchange, adding that this facility was not available to employees appointed after January 2, 1959.

Separately, the ministry, through a notification, set Rs37,000 as the minimum salary per month for all civil and contract employees from July 1, 2024.

The notification stated that the minimum salary had been increased from Rs32,000, and those getting less than Rs37,000 will be given special allowance.

The increment would apply to all civil and contract employees of the federal government, the notification stated. It explained that the expenditure on special allowances would be borne from the current budget of the respective ministries and divisions.