The Securities and Exchange Commission of Pakistan (SECP) has given the green light to seven pension funds for the Government of Balochistan, advancing the province’s transition to a Defined Contribution (DC) pension system.

This development is part of a broader nationwide effort to replace the traditional Defined Benefit (DB) model with a more sustainable and transparent structure. Under the DC system, retirement payouts are determined by contributions from both employees and the government, with returns tied to market-based investment performance.

Other provinces, including Punjab and Khyber Pakhtunkhwa, have already implemented similar contributory pension frameworks, while the federal government and Sindh are currently moving toward operational rollout.

Officials noted that all governments have now put in place the necessary legal groundwork to support the transition.

The newly approved funds will be handled by licensed asset management firms such as Atlas Asset Management Limited, ABL Asset Management Limited, Pak Qatar Family Takaful Limited, Faysal Asset Management Limited, and Al Meezan Investment Management Limited.

According to the SECP, the reform is expected to curb long-term pension liabilities, strengthen fiscal discipline, and gradually reduce pressure on public finances. Meanwhile, proposals for 17 more pension funds are under review as the reform process continues to expand.