ISLAMABAD: The federal government has approved Rs200 million funds through technical supplementary grant for conversion of the pensions of Pakistan Military Accounts to Direct Credit System (DCS).
Sources said that the Ministry of Defence has requested for allocation of funds Rs1.1 billion over a span of three financial years for procurement of infrastructure and hiring of required human resource for smooth transition of existing pensioners to DCS and sought approval of Rs200 million through TSG to the PMAD during current financial year 2021-22. The ECC presided over by Finance Minister Shaukat Tarin has allowed Rs200 million TSG for conversion of PMAD pensioners to DCS.
Sources added that the ECC was informed that PMAD of Ministry of Defence has conducted a detailed study for conversion of pensioners to DCS and requested for allocation of funds in the light of prevailing policy of the government. The ECC was further informed that the Finance Division was approached for mandatory consultation in the matter prior to submitting proposal for seeking approval of the ECC.
The ECC meeting was informed that the Finance Division has agreed to provide Rs200 million TSG for this purpose from demand number 45 to demand number 30 of Defence Services.
The ministry further stated that in accordance with federal cabinet’s decision matter related to the TSG shall be presented before the ECC for its consideration.
The Ministry of Defence sought ECC’s approval for the TSG amounting to Rs200 million to the PMAD under demand number 30 during current financial year 2021-22.
Copyright Business Recorder, 2022