KEY POINTS
- SECP approves seven pension funds for Balochistan government
- Step part of transition from Defined Benefit to Defined Contribution system
- Pension funds to be managed by licensed, A-rated asset managers
- Additional 17 pension fund applications are under review
ISLAMABAD: Pakistan’s corporate regulator, the Securities and Exchange Commission of Pakistan (SECP), has approved seven pension funds for the government of Balochistan as part of reforms toward a contributory retirement benefit system.
The approvals mark progress in the country’s transition from the traditional Defined Benefit (DB) pension model to a more sustainable Defined Contribution (DC) framework.
The pension reforms in Pakistan are aimed at reducing long-term fiscal burdens and improving transparency.
According to the SECP, the newly approved funds will operate under the Balochistan Contributory Pension Scheme Rules, 2025.
Licensed, and A-rated asset management firms, including Atlas Asset Management Limited, ABL Asset Management Limited, Pak Qatar Family Takaful Limited, Faysal Asset Management Limited and Al Meezan Investment Management Limited would manage these funds.
The regulator has also approved the offering documents for these funds, paving the way for their operational rollout.
Meanwhile, applications for 17 additional pension funds are currently under process, indicating continued momentum in the reform programme.
Other provinces, including Punjab and Khyber Pakhtunkhwa, have already implemented contributory pension systems.
The federal government and Sindh are in the process of operationalising similar frameworks, according to an SECP statement.
Under the Defined Contribution model, pension benefits are determined by contributions from both employees and employers into individual accounts, with returns linked to market-based investment performance.
The system is designed to enhance transparency, give employees greater control over retirement savings, and ensure long-term fiscal sustainability by limiting the government’s pension liabilities.
The Commission is working closely with federal and provincial authorities to ensure the smooth implementation of pension reforms nationwide, in line with Pakistan’s pension reforms.
