ISLAMABAD – The central government has clarified its stance on an expected extension in the retirement age in Pakistan by two years.
Spokesperson of the Establishment Division, Government of Pakistan has made it clear that it is not considering any proposal to increase the retirement age of its employees.
“There are reports circulating on different media outlets regarding the extension of retirement age of employees to 62 years, but such news are nothing but rumors,” said the statement from Establishment Division.
Background of controversy on retirement age in Pakistan
Earlier in 2016, the cabinet division had decided to send the proposal to the former Prime Minister Nawaz Sharif for extension in retirement age by two years.
The sole purpose of the move was to save billions of rupees in national exchequer.
The cabinet division further said that due to the retirement of 5000 to 10000 employees, the financial burden of Rs 100 million to 150 million is shifted to national exchequer every year.
The government has to incur expenses of Rs 100 million on account of payment of salaries to those who are appointed in place of retired employees every year.
According to the proposal, the government spends Rs 30 billion on account of salaries and pension of the employees per annum.
It is pertinent to mention here that back in 2014, the International Monetary Fund (IMF) had also advised government extend the retirement age to 62 years to reduce the pension bill.