The Securities and Exchange Commission of Pakistan (SECP) has published a White Paper following a national workshop on transitioning Pakistan’s public pension arrangements from a defined benefit model to a defined contribution (DC) system under SECP’s Voluntary Pension System (VPS) framework. The paper consolidates stakeholder discussions on how to operationalise a more transparent, sustainable and inclusive DC approach. The workshop brought together federal and provincial government representatives, insurance and pension fund industry participants, and international development partners, and was positioned against ongoing provincial reforms. Khyber Pakhtunkhwa initiated DC pension reforms in July 2022, enrolling newly hired employees with contributions of 10% from employees and 12% from the employer, while Punjab has notified its own DC pension rules and other provinces are drafting and implementing similar frameworks. The White Paper sets out policy and institutional recommendations for a coordinated national rollout, including finalising the pension scheme framework, ensuring tax consistency, amending labour laws and increasing employee awareness.
Securites & Exchange Commission of Pakistan 2025-07-16
Securities and Exchange Commission of Pakistan publishes white paper to support a national shift from defined benefit to defined contribution pensions
The Securities and Exchange Commission of Pakistan (SECP) released a White Paper on transitioning public pensions to a defined contribution system under the Voluntary Pension System framework. Following a national workshop, it outlines policy recommendations for a coordinated rollout, including finalising the pension scheme framework and amending labour laws. It highlights provincial reforms, such as Khyber Pakhtunkhwa's and Punjab's initiatives, and emphasizes the need for transparency and sustainability.