ISLAMABAD: The federal government has introduced a new digital pension system for federal pensioners, removing the requirement for pensioners to visit banks for biometric verification. However, pensioners will be required to complete life verification through the NADRA app every six months.

The new system has been introduced by the Ministry of Finance on the directives of Prime Minister Shehbaz Sharif, with the ministry issuing an official notification and related documents for the implementation of the digital pension system.

Under the new system, the traditional paper-based forms and procedures have been abolished. Pension payments will be transferred directly into pensioners’ bank accounts through the direct credit system, eliminating the need for pensioners to visit banks for biometric verification.

According to the Ministry of Finance notification, pensioners will have to provide proof of life through the NADRA app every six months to continue receiving their pensions. An alternative verification mechanism has also been introduced for elderly pensioners.

Banks’ Role Limited Under New System

Under the new arrangement, banks will be responsible only for disbursing pension payments. Commercial banks will no longer collect or verify proof-of-life or biometric data, nor will they have the authority to deactivate pension accounts.

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The NADRA system has been integrated with the systems of the Controller General of Accounts (CGA) and the Military Accountant General (MAG). As a result, a pensioner’s digital proof-of-life signal will be transmitted directly from NADRA to the CGA system.

The Ministry of Finance said the paper-based pension process had been completely phased out, while pension payments would be credited directly to pensioners’ bank accounts.

The new digital pension system will apply to all federal government civil employees and is aimed at making pension disbursement more convenient and digitally streamlined.

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