Pakistan government banned pensions in Foreign Currency
The Federal government of Pakistan banned all those pensioners from drawing pensions in foreign currency. This ban applies to pensioners appointed after January 2, 1959, in the public sector.
The Finance Ministry released a statement on it on August 29, 2024. They decided to implement this ban considering the current account deficit. Moreover, this ban will also help the government to control dollar outflows from the country.
According to the Finance Ministry, several retired government employees or pensioners who live abroad are asking for their pensions to be paid in foreign currencies.
However, the regulations for pension issuance prohibit this and the government could not make these payments in foreign currency due to poor national economic conditions.
The ministry also released an explanation in the form of an office memo. It said only employees hired before 1959 were eligible to receive pension payments in foreign currency and those who hired after January 2, 1959 were not eligible for this benefit.
It is significant to note that pension rules in Pakistan only allow retired government employees living abroad to receive their pension in foreign currency.
The Finance Division made these rules in 1980, explaining how pensions can be paid in foreign currency through Pakistani embassies or Pakistani missions abroad.
Click here to find out if the 5000PKR Note Banned notification in Pakistan
Following this, the Pakistan government banned pensions in foreign currency for all pensioners hired after Januray 2, 1959. However, the Finance Ministry also issued another notification about the salary increase. It applies to civil and contract employees of the federal government.
According to this notification, the minimum salary has increased from PKR 32,000 to PKR 37,000. However, government employees receiving a salary under PKR 37,000 would receive the special allowance.
It clarified that the current budget of respective ministries and divisions will bear the costs of special allowances.
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