Rs530bn allocated for pensions

ISLAMABAD: The government has allocated Rs530 billion for the pensions of federal government employees for FY2022-23, out of which Rs395 billion (74.52 percent) would go to retired military personnel and Rs135 billion (25.48 percent) to civil officials.

The budget allocation for the pensions has been increased from Rs525 billion to Rs530 billion. The total amount earmarked for the retired civil employees of the federal government is Rs135 billion in the current fiscal year, whereas Rs131 billion were allocated for the same purpose during the FY2021-22. The budget allocation for the pensions of retired military personnel for 2021-22 was Rs394 billion, which has increased to Rs395 billion.

For the FY2020-21, the government had earmarked Rs480 billion for the pensions of federal government employees, out of which Rs369 billion were spent on the pensions of retired military personnel and Rs111 billion for the civil officials.

The federal government had allocated Rs421 billion for the pensions of retired employees for FY2019-20. However, it was revised from Rs421 billion to Rs463.41 billion in 2019-20.

Similarly, the government had allocated Rs342 billion for the pensions of retired employees during FY2018-19, out of which Rs259 billion (75.95 percent) were allocated for the armed forces employees, whereas the remaining Rs82.22 billion (24.05 percent) were given to the retired civil employees.

The government had allocated Rs248 billion for pensions of federal government employees for FY2017-18, out of which Rs180 billion (72.58 percent) were earmarked for the retired armed forces personnel and Rs67.84 percent for the retired civil employees. However, the government revised the budget allocation for the retired employees' pensions. After the revised budget, the government increased Rs72.85 billion for armed forces’ pensions and Rs12.51 billion were increased for retired civil employees.

After the revised allocation for retired employees’ pensions during the previous FY2017-18, the federal government allocated Rs333.35 billion for pensions of federal government employees. Out of Rs333.35 billion, Rs253 billion were allocated for the retired armed forces officials and Rs80.35 billion for the civil employees.