State Bank raises alarm over snowballing pensions

By: News Desk      Published: 04:44 PM, 7 Jan, 2021
State Bank raises alarm over snowballing pensions

The State Bank of Pakistan (SBP), in its study report, has expressed concern over the increase in expenditures on pensions, reported 24NewsHD TV channel on Thursday. 

The report states that an eighteen percent increase in expenditures was recorded between 2011 and 2021.

According to the bank, pensions are 2.2 percent of the country’s GDP.  

The report emphasizes improving the pension framework in order to cut down the expenditures.

It suggests setting a tough criterion for inclusion in the list of pensioners besides applying brakes on further increase in the amounts reserved for the purpose.   

The report notes that the increase in expenditures at the same ratio was noticed in all four provinces. 

The SBP, in its report, says that the World Bank (WB) and the International Monetary Fund (IMF) had also termed increasing expenditures on pensions a burden on the country's economy. 

The bank further says it is feared that expenses would grow in the future.   

The report predicts that pension expenditures of Punjab and Sindh would be at par with those of Centre in 2050.