Proposal to Limit Family Pension Duration to 10 Years After Spouse's Death

The federal government has proposed reforms to the pension scheme, limiting the duration of family pension to 10 years after the death of a spouse.

The pension reforms introduced by the federal government were revealed in the Budget 2025-26.

In the budget speech, the Federal Finance Minister stated that the government is also implementing reforms in the pension scheme and will discourage early retirement.

The Finance Minister said that pension increases have been linked to the Consumer Price Index, and the duration of family pension after the spouse's death has been limited to 10 years.

He added that the practice of receiving multiple pensions will be eliminated, and in case of re-employment after retirement, individuals will have to choose between pension or salary.

Muhammad Aurangzeb stated that the right-sizing of 10 ministries has been approved, 6 divisions have been merged into 3, and similarly, 45 companies and institutions are being privatized, merged, or dissolved.

The Federal Finance Minister, in his budget speech, said that 40,000 posts have been abolished, and recommendations for the right-sizing of the next 10 ministries have been finalized.