Islamabad, Aug 29: Many retirees who live overseas are receiving pensions in foreign currency to which they have no legal claim.
The Finance Division has emphasized that the federal government is not authorized to permit foreign-resident retirees to receive their pension in foreign currency due to the country’s current account balance.
After taking notice of the situation, the Finance Division issued an office memo (OM) directing that pensioner appointed after January 2, 1959, be prohibited from receiving their benefits in foreign currency.
According to the OM, “the Finance Division has received reports of certain retirees who live overseas and are either receiving or attempting to get their pension in foreign currency.
The country’s current account balance predicament prevents the federal government from enabling retirees living overseas to receive their pension in foreign currency. Furthermore, such approval would not be required given the financial channel’s digitization and global accessibility.
Regarding this, it is specified that the payment of pensions to foreigners who reside overseas after retirement is permitted by Section IV of Chapter XLVIII of the Civil Service Regulations (CSR 966 — CSR 973). Finance Division established the process to be followed for pension payments in foreign exchange through the Pakistani Mission Abroad via O.M. No. F. 1(10) EF (B.II)/79-2340 dated 17-11-1980.
According to Finance Division, pensioners appointed on or after January 2, 1959, are not eligible to receive their pension in foreign exchange. These provisions are specifically intended for pensioners appointed before to that date.
The Finance Division went on to say that as a result, it is advised that no pensioners appointed on or after January 2, 1959, be permitted to receive their pension in foreign currency.
