According to the details, a notification has been issued following the approval of the Prime Minister.
The committee has been tasked with finalizing recommendations related to new allowances for employees and will also be responsible for evaluating the existing allowances.
As stated in the issued notification, the committee will be chaired by the Federal Minister for Finance, Muhammad Aurangzeb.
Additionally, the Federal Minister of Economic Affairs, Ahad Khan Cheema, will be a member of the committee.
The committee will also include the State Minister for Finance and Revenue, Ali Pervaiz Malik, and the Secretary of Finance.
Furthermore, the Secretaries of the Establishment Division and Defense will also be part of the committee, along with the Secretary of the Interior Division.
In early June this year, the Economic Coordination Committee (ECC) of the Cabinet approved the formation of a pension fund.
The finance ministry suggests lowering employee’s retirement age to 55
The federal government is contemplating reducing the retirement age of its employees from 60 to 55 years, according to reports.
Finance Minister Muhammad Aurangzeb chaired the Economic Coordination Committee (ECC) of the federal cabinet that okayed the proposal to introduce a Defined Contributory Scheme for new entrants. The scheme will apply to civilian employees from July 1, 2024, and to military personnel from July 1, 2025.
Prime Minister (PM) Shehbaz Sharif was also briefed on the proposal, suggesting the reduction in the employees’ retirement age but he did not give a positive response to it, the sources said.
No final decision has been made on the matter with further deliberation is underway.
“If the proposal to reduce employees retirement age is implemented, this change will only apply to civil servants,” the Ministry of Finance sources said.
The reduction in retirement age could lead to the retirement of several bureaucrats, the sources claimed. The bureaucracy is reportedly not in favor of reducing the retirement age to 55 years.
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