Islamabad July 17: The Securities and Exchange Commission of Pakistan (SECP) has issued a White Paper following the National Workshop on Transitioning to a Defined Contribution (DC) Pension Scheme, held on June 17, 2025.
The workshop brought together key stakeholders from federal and provincial governments, the pension and insurance sectors, and international development partners to discuss the shift from Pakistan’s unsustainable Defined Benefit (DB) pension model to a more sustainable and inclusive DC system, under the SECP’s Voluntary Pension System (VPS) framework.
Khyber Pakhtunkhwa pioneered DC pension reforms in July 2022, enrolling new employees with a 10% employee and 12% employer contribution structure. Punjab has since notified its own DC pension rules, with other provinces drafting similar frameworks.
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The SECP’s White Paper captures key insights from the workshop, highlights provincial progress, and outlines policy recommendations including finalizing the DC framework, ensuring tax consistency, amending labour laws, and raising employee awareness.
This document aims to support a coordinated, national approach to long-term pension reform in Pakistan.
