ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved seven pension funds for the Government of Balochistan, marking the practical implementation of the Defined Contribution (DC) pension model in the province.
This development is part of the government’s broader strategy to shift from the traditional Defined Benefit (DB) pension system to a more sustainable and transparent Defined Contribution framework.
Punjab and Khyber Pakhtunkhwa have already implemented contributory pension schemes, while the Federal Government and Sindh are in the process of operationalizing their pension fund structures.
It is noteworthy that the federal government and all provincial governments in Pakistan have introduced the required legal frameworks to support this transition.
The SECP is playing a central enabling role in shifting Pakistan from the traditional Defined Benefit system to a modern Defined Contribution pension framework. This new system will help reduce government’s long-term pension liabilities, gradually move pension obligations off the budget, and improve fiscal sustainability.
The seven pension funds approved for Balochistan, under the Balochistan Contributory Pension Scheme Rules, 2025. The approved pension funds will be managed by leading, SECP-licenced and A-rated pension fund 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 approved the offering documents of these funds.
In addition, applications for approval of 17 more pension funds are currently under process with pension fund managers.
Under the Defined Contribution model, pension benefits are based on contributions made by both employees and employers into individual accounts. This system ensures transparency and gives employees greater control over their retirement savings. The funds are professionally managed, and retirement benefits depend on total contributions and investment returns.
The SECP has been closely working with federal and provincial governments to ensure the smooth and effective implementation of pension reforms across Pakistan.
Copyright Business Recorder, 2026
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