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The pension time bomb
['Ahmad Mukhtar']
The Express Tribune
It is a quiet, compounding crisis that has been decades in the making: the nation's public sector pension liabilities.
In recent fiscal years, federal pension and superannuation expenditures reached staggering heights, approximately 78-87% of the entire Public Sector Development Programme (PSDP).
The solution lies in abandoning the DB model for future hires and transitioning to a fully funded, Defined Contribution (DC) system.
Recognising the urgent need for a robust private pension infrastructure, the SECP has aggressively updated its Voluntary Pension System (VPS) Rules.
By April 2026, the SECP had approved a massive, unprecedented rollout of private pension funds designed specifically for provincial governments transitioning their civil servants to a DC model.