Pakistan’s pension reform agenda gained fresh momentum after the Securities and Exchange Commission of Pakistan (SECP) approved nine new pension funds aimed at modernizing retirement financing for provincial governments.

The newly authorized funds include eight schemes for the Government of Balochistan and one for the Government of Punjab, expanding the total number of operational pension funds to 15 in Balochistan and 25 in Punjab.

According to official details, asset management responsibilities for Balochistan’s funds have been assigned to JS Investments Limited, Alfalah Asset Management Limited, NBP Fund Management Limited, and UBL Fund Managers Limited. The Punjab pension fund will be administered by AWT Investments Limited.

The latest approvals build on earlier regulatory clearance granted to seven pension funds introduced under Balochistan’s Contributory Pension Scheme Rules 2025 — a policy shift that marked the province’s move away from traditional pension structures.

Pakistan is gradually transitioning from the long-standing Defined Benefit pension system to a Defined Contribution model, under which retirement payouts depend on accumulated contributions and investment performance rather than guaranteed government payments.

Officials say the reforms are designed to ease mounting pension liabilities, strengthen public finances, and improve transparency and accountability in retirement savings management across the country.

The expansion of contributory pension schemes signals a broader institutional effort to make Pakistan’s pension framework financially sustainable as long-term fiscal pressures continue to rise.