Rs180 bn of Rs248 billion allocated for pensioners will go to retired forces personnel

ISLAMABAD: The government has allocated Rs248 billion for pensions of federal government employees for fiscal year 2017-18, out of which Rs180 billion (72.58 percent) would go to the retired armed forces personnel.

The total amount allocated for the retired civilian employees of the federal government is Rs67.84 billion in the current fiscal year whereas during the last fiscal year Rs67.41 billion were allocated for the same purpose. During the previous fiscal year 2016-17, the federal government allocated Rs245 billion for pensions of federal government employees. Out of Rs245 billion, Rs177 billion were allocated for the retired military personnel.

During the last five years, the federal government spent Rs1,008 billion for the pensions of its retired employees, including the civilian and retired armed forces personnel. Out of total Rs1,008 billion, the government spent Rs793 billion (78.67 percent) for the retired armed forces personnel. 

According to the budget documents of fiscal year 2011-12, the federal government allocated Rs140 billion for pensions out of which Rs98.02 billion, which is 69.80 percent of the total budget, was spent in paying pensions of the security forces personnel. In the year 2012-13, the pensions’ amount was increased from Rs140.42 billion to Rs172 billion. The allocation of pensions amount for retired security forces personnel reached from Rs98.02 billion to Rs131.03 billion which is 75.90 percent of the total pension allocated for pensions in the fiscal year 2012-13.

The budget documents further reveal that in the fiscal year 2013-14, the federal government increased the pension amount by almost five percent than the previous year. The government allocated Rs180.2 billion compared to Rs172.63 billion in the previous year.

The federal government did not increase the pension amount significantly in the fiscal year 2014-15 as only Rs5 billion was increased that year and reached Rs185.16 billion. However, the security forces personnel's pension ratio increased this year and Rs168.21 billion was spent on their pension compared to Rs142.13 billion last year.

According to the budget documents, the government spent Rs222.51 billion on the pensions in the fiscal year 2015-16 out of which Rs172 billion, which is 77.30 percent of the total allocation, was spent on the retired security forces personnel’s pension.