Balochistan pension reform gains traction as SECP clears seven funds, reviews 17 more

In a fresh step toward overhauling Pakistan’s public pension architecture, the Securities and Exchange Commission of Pakistan has approved seven pension funds for the Government of Balochistan, while applications for 17 additional funds remain under regulatory review.

The approvals come as governments across the country accelerate the transition from the legacy Defined Benefit pension model to the Defined Contribution framework, a shift designed to contain the ballooning cost of public sector retirement payments and improve fiscal sustainability over the long run.

According to the regulator, all federal and provincial governments have now put in place the necessary legal and regulatory structures to support the migration to contributory pensions, signalling a coordinated national push to reform the system.

Punjab and Khyber Pakhtunkhwa have already operationalised contributory pension schemes, while the federal government and Sindh are currently in the process of implementing their respective fund structures.

For Balochistan, the newly approved funds will function under the Balochistan Contributory Pension Scheme Rules, 2025, forming the operational core of the province’s shift to the new retirement savings regime.

The SECP said the offering documents of the funds have been cleared and the schemes will be managed by licensed, A-rated asset managers, including Atlas Asset Management Limited, ABL Asset Management Limited, Pak Qatar Family Takaful Limited, Faysal Asset Management Limited, and Al Meezan Investment Management Limited.

Under the Defined Contribution system, pension benefits are directly linked to the level of contributions made by employees and employers into individual retirement accounts, with returns determined by investment performance rather than fixed entitlements. Officials say the model is intended to enhance transparency, strengthen governance of pension assets, and gradually reduce the government’s exposure to unfunded pension liabilities.