ECC approves establishment of pension fund

Minister for Finance and Revenue Senator Muhammad Aurangzeb Thursday chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet, which approved the establishment of the Pension Fund.

The ECC approved Contributory Pension Scheme for Government Employees from 1st July 2024.

The Contributory Pension Scheme will be applicable from July 1, 2025.

The ECC also approved the technical supplementary grants (TSGs) to various ministries and divisions.

The meeting was attended by Minister for Industries & Production Rana Tanveer Hussain, Minister for Petroleum Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Planning Development & Special Initiatives Ahsan Iqbal, Minister of State for Finance & Revenue Ali Pervez Malik, State Bank of Pakistan Governor, Deputy Chairman Planning Commission, federal secretaries, and other senior officers of the relevant ministries.

The ECC gave approval of the following technical supplementary grants:

• 607.03 million to the Ministry of Aviation to provide for the Employee Related Expenses


• 10.477 million to the Communications Division to meet the expenses on account of Adhoc Relief Allowance


• 803.025 million to the Defence Division for PSDP Project titled “Establishment of National Aerospace Science & Technology Park (NASTP) in Project Aviation City Pakistan (ACP)


• 8.625 billion to the Military Accountant General and AGPR for the payment of pensions


• 12.1 billion to the Finance Division to pay off liability of Government of Sindh on account of abolition of Octroi and Zila Tax


• 293 million to the Finance Division in favour of the Department of Auditor General of Pakistan to make mandatory payments


• 1.086 billion to the Finance Division for settling pending claims of ZTBL under Prime Minister’s fiscal package for agriculture in wake of Covid-19.


• 1.3 billion to the Ministry of Foreign Affairs to meet the requirements of missions abroad


• 366.263 million to the Ministry of Information & Broadcasting to meet the contractual obligations and complete the Primary Data Center of the Project


• 96.480 million to the Ministry of Information & Broadcasting pertaining to publicity campaign on Defence Day


• 2.5 million to the Ministry of Interior as an award of outstanding performance by Mr. Arshad Nadeem, Pakistan Olympic Athlete


• 29.131 million to the Ministry of Interior for payment to NTS for Screening Test of Recruitment in ICT Police


• 130 million to the Ministry of Interior to provide ICT Police for the payment of POL charges and clearance of liabilities


• 112.417 million to the Ministry of Law & Justice for the regularization of pay and allowances of law officers


• Rs 428.806 million to the Ministry of Maritime Affair for development projects in Gawadar


• 49.781 million to the National Disaster Management Authority (NDMA) to fulfill its obligatory payments


• 7.987 billion to the Planning Commission for clearance of liabilities for the 7th Population & Housing Census


• 4,228.429 million to the Federal Board of Revenue (FBR) for clearing the liabilities of foreign funded projects of FBR and


• 444.271 million to the Ministry of Interior for the allocation to Federal Investigation Agency (FIA) to meet employee related expenses.

The ECC also approved the summary of Finance Division to utilize the funds of Rs. 355.640 million established by Government of Pakistan – Policy Committee and allocate the same to the National Disaster Management Authority for flood relief assistance.

Another summary of Finance Division to launch the “Risk Coverage Scheme for SMEs” was also approved by the Committee with the direction to monitor and evaluate the scheme on quarterly basis.

The Committee also approved the proposal of Defined Contributory Scheme for the new entrants with effect from 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 Rs. 11.13 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 Rs. 2 billion to clear pending liabilities.