Finance Minister Backs Proposal to Raise Retirement Age Amid Pension Concerns

Finance Minister Muhammad Aurangzeb has endorsed a proposal to raise the retirement age from 60 to 62 years to ease Pakistan’s rising pension burden. Speaking at a Senate Standing Committee on Finance meeting, chaired by Senator Saleem Mandviwalla, Aurangzeb acknowledged the growing strain from unfunded pension liabilities and pointed to the implementation of a Defined Contributory Pension system for civilians as a reform step.

Senator Farooq H. Naek suggested increasing the retirement age to retain experienced personnel, a proposal supported by Senator Anusha Rahman, who advocated raising it to 65 or even 70 years. Aurangzeb shared that he had implemented similar changes in the banking sector.

However, Finance Ministry officials noted that military pensions remain the primary burden, with Rs. 510 billion allocated in the 2025–26 budget for the armed forces’ pension packages. Aurangzeb also confirmed that provinces will begin collecting agricultural income tax from July 1, 2025.