Govt minimises commercial banks' role in pension payments

According to Dawn, the finance ministry has removed commercial banks from the biometric checks and validation of pensioners' proof-of-life certificates, or PoLCs. The change, announced on Tuesday through revised standard operating procedures, follows directions from Prime Minister Shehbaz Sharif to make pension processes easier for retirees. Under the new rules, the National Database and Registration Authority will connect directly with the Controller General of Accounts and the Military Accountant General, bypassing bank channels.

Banks will act only as pension disbursement agencies, and they cannot place pension accounts on dormant status or collect and retain pensioners' biometric data in their ordinary capacity. Pensioners must now verify at least once every 180 days rather than on the fixed March and September schedule, and they can do so through the Nadra PakID app or authorised Nadra centres. The notification also abolished the paper-based Disburser's Half process, with federal pensions to be paid exclusively through the Direct Credit System.

Banks have been told to revive pension accounts flagged as inactive before August 22, 2026, and cannot restrict debits because proof of life was not submitted. Pensioners who lack digital access, are elderly or have medical conditions can submit paperwork at a District Accounts Office or Pension Facilitation Centre instead, while banks are barred from accepting Form 10 or Form 12.