Pension reforms: A case for Pakistan

The study deals with pension system reforms for the pakistan economy and highlights the current situation and future prospects. the study presents an overview of empirical evidence on pension system reforms,the strengths and weaknesses of the pension system of pakistan and the institutional development pertaining to pension reforms. fully funded pension system can help to strengthen the formal channels of retirement savings and can help to get rid of problems prevailing in current pension system. if the decision to reform the pension system is not taken in time then in the near future rising pension expenditure would lead to increase in indirect taxes,reduction in development expenditure and/or increase in government borrowings. although some efforts to reform the pension system had been made to reduce the government's rising pension bill,yet despite realization of the problem no serious effort had been made to reform the pension system in a fundamental way.