The federal government introduced the Contributory Pension Scheme for government employees last year. However, there is now a possibility of further delay in implementing the scheme for the armed forces in the upcoming federal budget for the fiscal year 202-26.
The Ministry of Finance has proposed granting an exemption to military personnel from the Contributory Pension Scheme in the next fiscal year's budget, said sources. However, final approval for this proposal will be sought from the International Monetary Fund (IMF).
Sources said during the IMF delegation's visit to Pakistan next month, discussions are expected on the proposal to exempt military personnel from the Contributory Pension Scheme.
They said armed forces personnel were initially scheduled to be included in the scheme from July 1, 2025. The scheme had been implemented for new civilian government employees from July last year.
Sources said no mechanism has yet been developed for including the armed forces in the scheme. Due to the lack of a defined structure and procedure, implementation is unlikely even next year. The IMF has not set any condition requiring the immediate inclusion of armed forces personnel in the scheme.
According to the Contributory Pension Scheme, 10% of the employee's basic salary was to be contributed by the employee, while the federal government was to contribute 20% of the employee's basic salary to the pension fund.
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