ECC forms pension fund, doesn’t raise retirement age

ISLAMABAD: The ECC on Thursday approved establishment of pension fund without making any allocations.

The retirement age of public servants did not increase under the new policy as all powerful quarters had sternly opposed it. The ECC also granted its assent for Defined Contributory pension for new entrants.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division.

The Cabinet Committee gave approval of the following Technical Supplementary Grants (TSGs) to various Ministries/Divisions: Rs607.03 million to the Ministry of Aviation to provide for the Employee Related Expenses; Rs10.477 million to the Communications Division to meet the expenses on account of Ad hoc Relief Allowance; Rs803.025 million to the Defence Division for PSDP Project titled “Establishment of National Aerospace Science & Technology Park (NASTP) in Project Aviation City Pakistan (ACP); Rs8.625 billion to the Military Accountant General and AGPR for the payment of pensions; Rs12.1 billion to the Finance Division to pay off liability of government of Sindh on account of abolition of Octroi and Zila Tax; Rs293 million to the Finance Division in favour of the Department of Auditor General of Pakistan to make mandatory payments; Rs1.086 billion to the Finance Division for settling pending claims of ZTBL under Prime Minister’s fiscal package for agriculture in wake of Covid-19; Rs1.3 billion to the Ministry of Foreign Affairs to meet the requirements of missions abroad; Rs366.263 million to the Ministry of Information & Broadcasting to meet the contractual obligations and complete the Primary Data Center of the Project; Rs96.480 million to the Ministry of Information & Broadcasting pertaining to publicity campaign on Defence Day; Rs2.5 million to the Ministry of Interior as an award of outstanding performance by Arshad Nadeem, Pakistan Olympic Athlete; Rs29.131 million to the Ministry of Interior for payment to NTS for Screening Test of Recruitment in ICT Police; Rs130 million to the Ministry of Interior to provide ICT Police for the payment of POL charges and clearance of liabilities; Rs112.417 million to the Ministry of Law & Justice for the regularisation of pay and allowances of Law offices; Rs428.806 million to the Ministry of Maritime Affairs for development projects in Gwadar; Rs49.781 million to the National Disaster Management Authority (NDMA) to fulfill its obligatory payments; Rs7.987 billion to the Planning Commission for clearance of liabilities for the 7th Population & Housing Census; Rs4,228.429 million to Federal Board of Revenue (FBR) for clearing liabilities of foreign funded projects of FBR; Rs444.271 million to the Ministry of Interior for the allocation to Federal Investigation Agency (FIA) to meet employees related expenses.

The Cabinet Committee also approved the summary of Finance Division to utilise the funds of Rs355.640 million established by Government of Pakistan Policy Committee and allocate it to National Disaster Management Authority for flood relief assistance. Another summary of Finance Division to launch the “Risk Coverage Scheme for SMEs” was also approved with the direction to monitor and evaluate the scheme on quarterly basis. The ECC also gave the principle approval to the Finance Division for the establishment of Pension Fund. The committee also approved the proposal of Defined Contributory Scheme for the new entrants w.e.f. 1st July, 2024 and for armed forces w.e.f. 1st July, 2025. The ECC further approved the summary of Ministry of Information Technology & Telecommunication to return Rs11.13 billion to Universal Service Fund (USF) to meet the budget shortfall. The committee approved the request of the Ministry of Railways for additional funds and allowed grant of Rs2 billion to clear pending liabilities.