Govt bans pensions in foreign exchange

ISLAMABAD: Taking notice of payment of pensions in foreign exchange, the government has barred all those pensioners from drawing pensions in foreign exchange who had been appointed after January 2, 1959 in the public sector.

The step was taken keeping in view the current account deficit and to control dollar outflows from the country.

According to a circular issued by the Finance Division instances have been reported that a number of pensioners, who are residing abroad, are drawing/ trying to draw their pensions in foreign exchange. The situation relating to current account balance of the country does not permit the federal government to allow such pensioners to draw pension in foreign exchange. Further, in view of the digitisation and worldwide accessibility of the banking channel, there would be no need for such permission.

The civil service regulations allow the grant of pension in foreign exchange to those residing abroad after retirement. The Finance Division in 1980 laid down procedure to be adopted for payment of pension in foreign exchange through Pakistani missions abroad.

The Division said these provisions are meant for those pensioners, who have been appointed before 2nd January, 1959, and the pensioners appointed on or after January 2, 1959, are not entitled to draw their pension in foreign exchange.