Plan To Borrow Another $500 Million For Pension Reforms
Mian Nadeem
Published September 28, 2026 | 09:33 PM
A loan equivalent to Rs138.48 billion will be obtained from the Asian Development Bank, according to Finance Ministry sources.
The sources revealed that the loan would be used for the Transforming Public Sector Pension Program. The Asian Development Bank will also provide Rs159.2 million in technical assistance for this program.
The initiative will commence on November 1, 2026, and conclude in November 2029.
The Federal government's annual pension bill has reached Rs1,169 billion. This new loan program is conditional on the success of the reforms.
The existing pension system, the sources noted, has become a significant financial burden on the national exchequer. The loan will be acquired over the period from the current year to fiscal year 2029.