ISLAMABAD, Nov 20 (Wealth Pakistan): The Ministry of Finance, in collaboration with the Controller General of Accounts (CGA) and the Accountant General Pakistan Revenues (AGPR), has launched several initiatives to improve the pension system for overseas Pakistani retirees. A document available with Wealth Pakistan shows that the government is working to resolve long-standing issues related to pension disbursements, data integration and logistical challenges, ensuring timely payments for pensioners living abroad.
Data gaps create delays in pension processing
One of the major challenges highlighted by the Finance Division is the difficulty in linking the data of autonomous bodies with the AGPR system. This gap has caused delays in processing pensions and General Provident Fund (GPF) contributions for civil servants on deputation.
Civil servants posted to autonomous bodies follow separate pension contribution mechanisms. These mechanisms do not always integrate with AGPR’s system. As a result, discrepancies in pension transfers often arise. To address the issue, the Finance Ministry plans to develop a more robust tracking system. The goal is to maintain the pension history of civil servants and ensure accurate transfer of their contributions.
Problems faced by staff of abolished or merged entities
The document also notes difficulties faced by employees of abolished or merged entities. While some pensioners continue receiving payments without issue, others nearing retirement have faced delays in leave encashment and GPF withdrawals.
The Finance Division has directed departments to prioritise these cases. The aim is to protect pensioners’ rights during the transition and prevent delays in benefit disbursements.
Overseas retirees struggle with banking and verification
Many Pakistani retirees living abroad have reported difficulties opening bank accounts in Pakistani rupees to receive pension payments. According to the State Bank of Pakistan (SBP), pensioners must open new bank accounts to continue receiving funds. Biometric verification is also mandatory for overseas retirees to validate their pension claims.
The verification process — including the submission of proof of life certificates — remains a challenge for pensioners living in remote regions where access to bank branches is limited.
NADRA developing online biometric verification
To resolve these issues, NADRA is developing an online platform that will enable biometric and facial recognition verification. This system will allow overseas pensioners to submit proof of life certificates remotely, removing the need to travel to Pakistan for physical verification.
The platform aims to ease the burden on retirees while ensuring timely payments. Development work is currently underway, with plans to roll out the system in the near future.
Government pushes banks to synchronize systems
Alongside technological improvements, the Finance Ministry has instructed SBP to work with banks to align their systems with the new online verification application. This coordination is intended to ensure smooth pension transfers for overseas retirees.
This joint effort by the Finance Ministry, SBP, NADRA and AGPR seeks to improve efficiency and transparency in pension management. The reforms aim to ensure that overseas Pakistani pensioners receive their benefits without unnecessary delays.
Part of broader public sector pension reforms
These measures form part of the government’s wider plan to modernise the public sector pension framework. The goal is to improve service delivery and guarantee that pensioners — whether in Pakistan or abroad — receive timely and reliable payments.