OneWorld.net (U.S.)

The report titled: Pension and Social Security Schemes in Pakistan: Some Policy Options by Pakistan Institute of Development Economics, aims to identify the modalities of a comprehensive pension system and the role of other relevant agencies that give protection and coverage to the elderly and poor population in Pakistan.

The study assesses population of the elderly and the poor in the context of changing socio-economic conditions.

Due to the fast eroding traditional family system in wake of urbanisation and modernisation, the support base of the elderly and poor population has been greatly eroded.

The study reviews and evaluates the existing policies and programmes of social assistance including pensions and security schemes in the country.

The authors N. Mahmood and Z.M. Maser look at government-funded social protection schemes in the informal sector that transfer money or goods to individuals that are not linked to contributions.

For instance, the report cites examples of Zakat, a state-based option for Sunni Muslims to meet their charitable obligations through a deduction once a year based on the value of certain financial assets and Bait-ul-Mal, whose benefits are open to all regardless of creed and the funds are entirely controlled by public servants.

The paper argues that there is an overlap between Bait-ul-Mal and Zakat in the area of assistance to individuals.

There seems to be no good reason for continuing the two agencies providing the same type of assistance to the same target group.

It would seem better to divide the responsibilities more clearly so that Bait-ul-Mal would deal with minorities or specific target groups only and this option needs to be seriously considered.

Coverage and adequacy, management and monitoring of resources that affect the efficiency of the pension plans and social security system are discussed with suggestions and policy options to improve the situation.

The analysis clearly suggests that to improve the impact of pension and social security schemes in Pakistan, the efficient deployment of resources has to be guaranteed and the governance structure ranging from resource allocation to implementation has to be improved.

The ongoing reforms are a step in the right direction but they are far from adequate to show a notable impact on the welfare of the majority of the eligible subgroups of the elderly and economically disadvantaged population.

Source: Eldis