ISLAMABAD: The federal government has taken an important decision under the pension reform policy and linked the annual increase in pension to the rate of inflation.
This decision was taken at the recommendation of Pay and Pension Commission.
According to the notification issued by the Finance Ministry, the annual pension is now being made on the basis of 80 percent of inflation rate of the last two years.
For this purpose, the Consumer Price Index (CPI) issued by the State Bank of Pakistan will be made the base or reference. The order is made effective immediately.