SECP Advances Pension Reform with New Approvals for Balochistan and Punjab
The Securities and Exchange Commission of Pakistan (SECP) has taken a significant step forward in the country's pension reform agenda by approving nine additional pension funds. This includes eight funds for the government of Balochistan and one for the government of Punjab, marking a pivotal development in the transition to a more sustainable retirement system.
Expanding Pension Fund Portfolios
With these latest approvals, the total number of authorized pension funds for Balochistan has increased to fifteen, while Punjab's total has now reached twenty-five. The newly approved funds for Balochistan will be managed by several prominent financial institutions: JS Investments Limited, Alfalah Asset Management Limited, NBP Fund Management Limited, and UBL Fund Managers Limited. For Punjab, the fund will be overseen by AWT Investments Limited.
Building on Previous Reforms
This development builds upon SECP's earlier approval of seven pension funds for Balochistan under the Contributory Pension Scheme Rules, 2025, which initiated the implementation of the Defined Contribution (DC) pension model in the province. The approvals are part of a broader government strategy to shift from the traditional Defined Benefit (DB) pension system to a more sustainable, transparent, and fiscally responsible DC framework.
Role of SECP and Benefits of the DC Model
SECP continues to play a central enabling role in this nationwide transition, facilitating the adoption of pension reforms across provinces. The DC model is expected to yield multiple benefits, including:
- Reduction of long-term pension liabilities for governments.
- Improved fiscal sustainability through better management of retirement funds.
- Greater transparency in pension operations and individual ownership of retirement savings.
- Professional management of pension funds by authorized institutions.
This move aligns with efforts to enhance retirement security and financial stability in Pakistan, with SECP at the forefront of regulatory oversight and implementation.
