Punjab govt suspends annual hike for three types of pensions

Likely driven by financial constraints or a need to drop public expenditure, the Punjab government on Tuesday announced to freeze the annual hike in three types of pensions in the province.

Effective from December 2 for government employees retiring from Tuesday, the halt in pensions was announced in a circular issued by finance secretary Mujahid Sherdil.

The circular regarding the suspension of annual pension increments was conveyed to all administrative secretaries and heads in compliance with the directives of those in authority.

The suspension of three types of pensions includes pension increments listed under paragraph one of the Finance Department’s letter issued in 2015, the one under paragraph two of the letter issued in 2011, and the one mentioned under paragraph one of the Finance Department’s letter issued in 2022.

All the departments and institutions are directed to initiate the documentation to terminate pension raises ordered under the new letter, directed by the finance secretary in the circular.

The development is said to be prompted by economic challenges, particularly pension-related resources, which Pakistan has been grappling with.