Pakistan to revise retirement payment policy of govt workers

The federal government has decided to revise its policy regarding retirement payments for civil servants under the Benevolent Fund, a move expected to significantly increase post-retirement support for government employees.

A parliamentary committee was told the government is working to restructure payment slabs for retired employees across various pay grades.

In a briefing to the Committee on Cabinet Secretariat of the National Assembly, the country’s lower house, officials said as per the new policy, government employees retiring in lower grades will receive increased lump sum payments.

Specifically, employees from grades 1 to 10 will receive PKR 500,000 upon retirement, those in grades 11 to 16 will be entitled to PKR 1 million, while civil servants in grades 17 and above will receive PKR 1.5 million.

Officials from the Benevolent Fund informed the committee that a professional consulting firm has been hired to assess the financial implications of the new policy and to propose an implementation timeline. The final decision on when and how to enforce the policy will be guided by the firm's findings.

However, the discussion took a critical turn when PPP MNA Agha Rafiullah, a member of the committee, expressed frustration over the current system, remarking that the federal government delays disbursements until after the deaths of retired officials.

The standing committee granted the Benevolent Fund administration a 90-day deadline to complete its financial impact analysis and submit a comprehensive report.

The committee emphasized the importance of ensuring that the revised policy is not only financially sustainable but also implemented without unnecessary delays.

Separately, the committee also sought a briefing on the Prime Minister’s relief efforts for flood-affected communities.

Members raised concerns over the mechanism of aid distribution and called on the Power Division to clarify its role in the relief operation. The committee has summoned the Federal Minister for Energy to attend the next meeting and provide a detailed explanation of the government's strategy for delivering aid to flood victims.

Performance of power and gas regulators

The standing committee has also denounced loadshedding by electricity distribution companies (DISCOs), terming it a violation of policies and directions set by the power sector regulator, National Electric Power Regulatory Authority (NEPRA).

The committee was informed that power distributors were undertaking loadshedding as per the Aggregate Technical and Commercial loss policy on the instructions of the Power Division and such practice was a clear violation of NEPRA’s Performance Standards Distribution Rules, 2025.

The NEPRA further said it never recognized or approved the practice in question.

The committee was later briefed on the performance of OGRA, a regulator of the petroleum and gas sector. The committee censured OGRA officials over their weak monitoring mechanism to stop the sale and distribution of LPG in residential areas.

The committee also expressed its concern about the manufacturing of substandard LPG cylinders and called for strict legal action against all those not conforming to the safety standards.

The committee proposed media campaigns to inform the public on the hazards of using substandard LPG cylinders.