The Securities and Exchange Commission of Pakistan (SECP) has significantly expanded the country’s pension reform initiative by sanctioning nine additional pension funds for two provincial governments, a move aimed at modernising the national retirement savings framework.
The regulatory body said today that it has authorised eight new pension funds for the Government of Balochistan and a single fund for the Government of Punjab, intensifying the nationwide shift away from the traditional state-guaranteed pension model.
With this latest round of approvals, the total number of authorised pension schemes for Balochistan has increased to fifteen, while Punjab’s portfolio has grown to twenty-five.
This development is a key part of a broader governmental strategy to transition from the long-standing Defined Benefit (DB) system to a more fiscally responsible Defined Contribution (DC) framework.
The newly sanctioned Balochistan funds will be overseen by JS Investments Limited, Alfalah Asset Management Limited, NBP Fund Management Limited, and UBL Fund Managers Limited. The additional fund for Punjab has been entrusted to AWT Investments Limited.
The DC model is anticipated to alleviate long-term pension liabilities on the state, enhance fiscal sustainability, and offer employees greater transparency and direct ownership of their retirement capital through these professionally managed funds.
Today”s announcement builds upon the SECP”s prior approval of seven pension funds for Balochistan, which initiated the implementation of the Defined Contribution model in the province under the Contributory Pension Scheme Rules, 2025.