Office memorandum on drawing pension in foreign exchange

The Finance Division has outlined the situation relating to the current account balance of the country does not permit the federal government to allow pensioners abroad to draw pension in foreign exchange.

The Finance Division took notice of the matter and issued an office memorandum (OM), stating: “Instances have been reported to Finance Division that a number of pensioners, who are residing abroad, are drawing/trying to draw their pensions in foreign exchange.”

It added:  “The situation relating to current account balance of the country does not permit the federal government to allow pensioners residing abroad to draw pension in foreign exchange.

“Further, in view of the digitization and worldwide accessibility of the banking channel, there would be no need for such permission.

It continued: “In this regard, it is stated that Section IV of Chapter XLVIII of the Civil Service Regulations (CSR 966 — CSR 973) allows the grant of pension to foreign are residing abroad after retirement. Finance Division, vide O.M No. F. 1(10)EF(B.II)/79-2340 dated 17-11-1980 laid down procedure to be adopted for payment of pension in Foreign Exchange through Pakistani Mission Abroad.”

The Finance Division stressed these provisions are meant for those pensioners, who have been appointed before January 2, 1959 and the pensioners appointed on or after  January 2, 1959, are not entitled to draw their pension in Foreign Exchange.

“It is accordingly advised to ensure that no pensioners, who have been appointed on or after January 2nd, 1959 be allowed to draw pension in foreign exchange.”