Hundreds of government employees launched a pension reforms protest in Islamabad on Wednesday, demanding the reversal of new pension rules at Secretariat Chowk. Protesters blocked both entrances to the government secretariat.
A strong police force, including senior officers, arrived to manage the pension reforms protest. However, tensions escalated, leading to clashes between officers and demonstrators. The employees criticized the reforms as discriminatory, targeting policies like removing dual pensions and a revised pension calculation method. They also called for a 10% hike in disability allowances.
Why the Pension Reforms Sparked Outrage
The government introduced these pension reforms on January 1, 2025, to cut financial costs and align with global fiscal standards. Under the new rules, pensions now reflect an average of the last two years’ salaries instead of the final salary. Authorities say this will save billions annually. Yet, protesters argue it unfairly harms retirees who rely on these funds. With negotiations stalled, demonstrations may persist.
اسلام آباد سرکاری ملازمین کا احتجاج،،،تشدد اور گرفتاریاں شروع pic.twitter.com/PjKJFLo1nW
— Naureen Ruftaj Khan (@Ruftaj) February 20, 2025The International Monetary Fund (IMF) raised concerns about civil servants’ asset declarations. The lender pushed for risk-based verification and penalties for officers whose assets exceed their income. However, amendments to the Civil Servants Act, tied to a $7 billion IMF package, cover only about 25,000 employees. Staff in autonomous bodies—like the State Bank of Pakistan and regulatory authorities—remain exempt from public disclosure.
Government employees in these organizations often make key financial decisions, a point underscored by audit objections from the Auditor General of Pakistan. Meanwhile, an IMF delegation met with the Establishment Division to discuss promotions, postings, and accountability for civil servants in grades 17-22. Sources say the IMF seeks concrete action against corruption beyond mere disclosure. This meeting coincided with the federal cabinet’s approval of Civil Servants Act amendments on Tuesday.
