Pensions policy

This letter refers to the editorial ‘Pension reforms’ (June 12, 2020), on the dire straits of pensioners who eagerly await an increase in pay and pension to match ever-increasing inflationary pressures. It is strange that the Planning Commission is seeking an approval of a $75 million loan from the World Bank to study the pension issue. Seeking a loan for such a simple issue, on which much work has been done in the past by various committees and commissions, has rightly been questioned. There is no need for a new study at the cost of $75 million that could be better utilized in providing relief to pensioners rather than wasted on producing a new document on pension reform. As the budget is around the corner, the window for any new spending or budgetary reforms is rapidly narrowing, so any study brought about later will be shelved like in previous cases.

The best solution is to implement the recommendations of the study carried out by Dr Mahboob ul Haq, that was very realistic and pragmatic. Linking pay and pension to the inflation index because would end the need for a continuing cycle of debate over reforms every time there is a price hike. The present annual ritual of increasing pay and pension from 10 to 15 percent has become a joke and must end.

Mukhtar Ahmed

Karachi