Adjust pensions

Over the past six years, inflation in Pakistan has soared to unprecedented levels, severely impacting pensioners. Essential goods such as wheat flour, sugar, cooking oil, and petrol have almost tripled in price, while the rupee has drastically depreciated. However, pension increases have not kept pace and are falling significantly short of the inflation rate. This inadequate adjustment has left pensioners struggling to meet their basic needs, highlighting the need for more comprehensive measures. To better accommodate pensioners, the government should consider several key measures. A substantial pension increase of at least 80 per cent in the 2024-25 budget is essential to help pensioners cope with skyrocketing costs.

The medical allowance, which has not been revised in almost nine years despite rising medical expenses, also requires urgent adjustment. Moreover, the government should introduce a periodic review mechanism for pensions and allowances to automatically adjust them in line with inflation. Implementing social safety nets, such as subsidized healthcare and utility bills for pensioners, would also provide much-needed relief. Providing subsidized essential goods such as food, fuel and utilities and offering discounted travel rates on trains and buses for pensioners, could further reduce their financial burden.

Azeem Hakro

Umerkot