Seven pension funds greenlit for Balochistan under DC pension framework

March 25, 2026 (MLN): The Securities and Exchange Commission of Pakistan has approved seven pension funds for the Government of Balochistan, formally launching the Defined Contribution (DC) pension system in the province as part of nationwide pension reforms.

The move signals a major shift away from the traditional Defined Benefit (DB) system toward a more sustainable and transparent model, according to a press release issued.

Under this transition, pension obligations will gradually move off government balance sheets, helping reduce long-term fiscal pressure and improve financial sustainability.

Balochistan joins Punjab and Khyber Pakhtunkhwa, which have already implemented contributory pension schemes, while the Government of Pakistan and Sindh are in the process of operationalizing similar frameworks.

Legal provisions supporting the transition have now been introduced at both federal and provincial levels.

The newly approved funds fall under the Balochistan Contributory Pension Scheme Rules, 2025, and will be managed by SECP-licensed, A-rated asset managers, including Atlas Asset Management Limited, ABL Asset Management Limited, Pak Qatar Family Takaful Limited, Faysal Asset Management Limited, Al Meezan Investment Management Limited and NBP Funds.

The SECP has also cleared the offering documents for these funds.

Meanwhile, applications for an additional 17 pension funds are currently under review.

Under the Defined Contribution model, retirement benefits are determined by contributions from both employees and employers into individual accounts, along with investment returns.

The system enhances transparency, ensures professional fund management, and gives employees greater control over their retirement savings.

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