Govt plans voluntary pension scheme for informal workers

Mettis Global reported that Pakistan is examining a voluntary pension arrangement aimed at domestic staff, farm workers, self-employed individuals and other informal labourers who currently lie beyond the formal pension framework.

The idea surfaced at a session of the Cabinet Committee on Pension Reforms for the Uncovered Labour Force, which was chaired by Law and Justice Minister Senator Azam Nazeer Tarar. The committee weighed several models for drawing pension-excluded workers into social protection, with possible participation from employers, employees and self-employed people. The framework under discussion would rely on digital registration and clear record-keeping, and the EOBI digital system was cited as a possible template. Tarar argued that pension protection should not be limited to the formal sector.

The proposed scheme is expected to emphasise accessibility, financial sustainability and alignment with International Labour Organization principles. Other ministers and an adviser to the prime minister also attended the meeting. No launch date, contribution structure or fiscal cost has been disclosed so far.