Key Points
- Eight new pension funds approved for Balochistan, one for Punjab
- Total authorised funds reach 40, fifteen in Balochistan and twenty-five in Punjab
- Reform reflects transition from Defined Benefit to Defined Contribution system
- Reform aims to reduce the long-term fiscal burden and improve transparency
ISLAMABAD: Pakistan’s financial regulator has expanded the country’s pension reform programme by approving additional funds for two provinces, accelerating a shift toward a more sustainable retirement system.
The Securities and Exchange Commission of Pakistan has authorised eight new pension funds for the Government of Balochistan and one for the Government of Punjab, further advancing implementation of the contributory pension framework, the commission officials said
After the latest approvals, Pakistan’s total number of authorised pension funds reaches 40. According to the officials, Balochistan has now reached pension funds, and twenty-five in Punjab.
Leading asset management companies, including JS Investments Limited, Alfalah Asset Management Limited, National Bank of Pakistan (NBP) Fund Management Limited, and United Bank Limited (UBL) Fund Managers Limited, would manage the funds in Balochistan.
Army Welfare Trust (AWT) Investments Limited would act as fund manager for the new funds approved for Punjab.
The latest move builds on earlier approvals of seven pension funds for Balochistan under the Contributory Pension Scheme Rules, 2025, marking the province’s initial rollout of the Defined Contribution model.
Pakistan is transitioning from a traditional Defined Benefit system. It guarantees fixed post-retirement payments to a defined-contribution framework.
Retirement savings are accumulated through regular contributions and investment returns in the new system.
The reform is designed to address mounting fiscal pressures linked to pension liabilities, an issue faced by many developing economies.
By shifting to a contributory model, authorities aim to enhance transparency, improve governance, and ensure long-term financial sustainability.
Under the new system, pension savings are managed by professional fund managers, giving individuals greater visibility and ownership over their retirement assets.
The system also aligns benefits more closely with contributions and market performance.
