Islamabad, June 14, 2025: As worries grow over the country’s increasing pension obligations, Federal Finance Minister Muhammad Aurangzeb has voiced his support to the suggestion of increasing the government retirement age from 60 to 62 years,
During a recent session of Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, the minister made the remarks stating that the existing pension system had become financially unsustainable. He emphasized that changes were underway; including the introduction of a Defined Contribution Pension structure now applied to civilian government employees.
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Senator Farooq H. Naek of the Pakistan Peoples Party (PPP), proposed the age limit increase, pointing out that the public sector is losing skilled and seasoned professionals prematurely. “If judges’ retirement age can be extended, why not bureaucrats?” he questioned. Senator Anusha Rahman also voiced agreement, even suggesting that the age limit can be raised to 65 or 70.
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Aurangzeb, referring to his time in the banking field, mentioned that retirement age had earlier been raised from 60 to 65 in private financial institutions. Nonetheless, he warned that while the recommendation made logical sense, it might not significantly reduce overall pension expenses.
