Govt directs banks to implement revised SOP for digital pension Proof of Life

September 22, 2026 (MLN): The federal government has formally withdrawn commercial banks from biometric verification and Proof of Life Certificate (PoLC) checks for pensioners, transferring the process to a direct digital link between the National Database and Registration Authority (NADRA) and the Controller General of Accounts (CGA) and Military Accountant General (MAG).

The State Bank of Pakistan (SBP) circulated the revised Standard Operating Procedure (SOP) for Digital Proof of Life and Pension Disbursement to presidents and chief executives of all banks and microfinance banks, and directed banks to acknowledge receipt and implement it with immediate effect.

Under the new mechanism, NADRA transmits a Digital Life Signal (DLS) directly to CGA and MAG through secure API-based connectivity, bypassing banking channels altogether.

Commercial banks will now function purely as pension disbursement agencies and will have no statutory or administrative role in collecting, retaining or verifying PoLC or biometric data under ordinary circumstances, though they may act as an operational conduit through NADRA's system where specifically authorized.

The SOP formally abolishes the physical "Disburser's Half" process, with pensions disbursed exclusively through the Direct Credit System (DCS), and does away with the fixed March and September verification cycle.

Pensioners will instead be required to complete biometric verification at least once every six months, at any point during the applicable window, through NADRA's Pak-ID mobile app or authorized channels including NADRA registration centres, mobile units, e-Sahulat franchises, or bank branches operating strictly as NADRA PoLC centers.

Accounts will no longer be marked dormant solely for non-completion of biometric verification, per the Finance Division's clarification of August 22, 2026.

Where no valid life signal is received for six consecutive months, an account will instead move to "suspense status," with disbursements paused but the account not classified as dormant; it is restored automatically to active status, along with any accrued arrears, once a valid verification signal is received  without requiring bank approval.

For pensioners marked dormant prior to August 22, 2026, banks are required to reactivate accounts once the pensioner either completes biometric verification through NADRA's system or receives a pension credit from CGA/MAG from September 2026 onwards.

A fallback mechanism remains in place for pensioners unable to generate a digital PoLC because of limited digital access, advanced age or medical conditions, or in family pension cases involving unresolved marital-status updates.

Such cases may be handled at designated District Accounts Offices or pension facilitation centers under CGA/MAG through manual forms  Form-10 for a manual Life Certificate, Form-11 for overseas pensioners receiving payment in Pakistan, and Form-12 for non-marriage or re-marriage declarations  which banks are barred from accepting or processing directly.

The SOP also sets out quarterly reconciliation between accounts offices and commercial banks based on API logs and digital ledgers, with discrepancies to be resolved within six weeks, and requires pension rolls to be generated by the 24th and verified by the 26th of each month for execution through RAAST or other micropayment channels.

The revised SOP supersedes all prior versions, including those issued on September 7, 2026, January 6, 2021, January 5, 2016, September 29, 2014 and May 6, 2011, and applies to pensioners under the Accountant General of Pakistan Revenues, the Military Accountant General, provincial accountants general offices, and departmentalized accounting organizations including the Ministry of Foreign Affairs, Pakistan Post, Forest Departments, the Central Directorate of National Savings, Pakistan Mint, Pakistan Railways and the Public Works Department.

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