Islamabad - Prime Minister Imran Khan, on Wednesday, gave approval in principle for the establishment of the Pakistan Post Pension Fund.

The decision was taken in a meeting chaired by the Prime Minister regarding the pension of Pakistan Post employees to reduce the burden of pensions on the government and to ensure better management of employee's pension matters.

The prime minister also approved setting up a committee comprising Ministry of Finance, Ministry of Communications, Security Exchange Commission of Pakistan and National Investment Trust to finalize proposals on the Pension Fund for submission before the federal cabinet.

The prime minister stressed devising pension system across the country on modern lines to meet the challenges of limited financial resources of the government and reduce burden over exchequer.

The meeting was informed that pension consumed around 34 percent of the budget of Pakistan Post, with gradual increase with time.

Pakistan Post, in line with prime minister’s direction to follow Malaysia’s pension model, proposed establishment of a pension fund. The objective is to reduce the burden on the government and improve system of pension.

Murad Saeed briefed about reforms in Pakistan Post and other steps to make the institution profitable.

The prime minister was apprised that the agreement on digitalization of Pakistan Post would be signed next week, under which the employees would be provided iPads and other gadgets for biometric verification.

For the first time, the retired and elderly pensioners of Pakistan Post had been given pension at their homes, a step being appreciated worldwide including by the United Nations. On the eve of Eid, Pakistan Post is disbursing pensions in advance.

The minister said 26 valuable pieces of land had been demarcated which remained under no use so far. The details would be soon presented to the cabinet for using the land for productive purposes.

Imran Khan lauded Minister for Communications and his team on the reforms relating to Pakistan Post.

Dr Ishrat Hussain briefed about the over-all pension mechanism of government employees.

The meeting was attended by Minister for Communications Murad Saeed, Minister for Planning Asad Umar, PM’s Adviser on Finance Dr Abdul Hafeez Sheikh, Adviser on Constitutional Reforms Dr Ishrat Hussain, Secretary Finance Naveed Kamran Baloch, Director General Pakistan Post Muhammad Ikhlaq Rana and senior officials.