SECP approves seven pension funds for Balochistan under reform drive

The Securities and Exchange Commission of Pakistan (SECP) has approved seven pension funds for the government of Balochistan, marking a key step in implementing the Defined Contribution (DC) pension model in the province.

The move is part of Pakistan’s broader transition from the traditional Defined Benefit (DB) system to a more sustainable and transparent Defined Contribution framework, aimed at easing long-term fiscal pressures.

According to the SECP, provinces including Punjab and Khyber Pakhtunkhwa have already rolled out contributory pension schemes, while the federal government and Sindh are in the process of operationalising their respective pension fund structures.

The regulator said that all federal and provincial governments have introduced the necessary legal frameworks to support the shift toward the new pension system.

The approved funds for Balochistan will operate under the Balochistan Contributory Pension Scheme Rules, 2025, and will be managed by SECP-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.

The SECP has also cleared the offering documents of these funds, while applications for approval of 17 additional pension funds are currently under process.

Under the Defined Contribution model, pension benefits are based on contributions made by employees and employers into individual accounts, with returns linked to investment performance.

The system is designed to improve transparency, provide greater control to employees over retirement savings, and reduce the government’s long-term pension liabilities.

The SECP said it continues to work closely with federal and provincial authorities to ensure smooth implementation of pension reforms across the country, as part of efforts to strengthen fiscal sustainability.