KP Plans Shift to Funded Pension Scheme by 2045

The Khyber Pakhtunkhwa government has announced a gradual transition to a funded pension scheme, aiming for full implementation by 2045. The move seeks to address the province’s growing pension liabilities, which have placed a heavy burden on the budget. Under the new system, a contributory mechanism will be introduced for new employees, replacing the existing pay-as-you-go model. Officials believe this reform will ensure long-term financial sustainability and create a more accountable and transparent pension structure.