Business
New contributory pension scheme unveiled with 10:12 employee-govt share | The Express Tribune
ISLAMABAD:
The federal government has implemented a new Contributory Pension Fund Scheme as the employees will now contribute 10 per cent of their salaries toward their pensions, making them eligible to receive a 12 per cent contribution from the national exchequer.
The Federal Government Defined Contribution (FGDC) Pension Fund Scheme Rules 2024 have been issued by the Finance Ministry’s Regulation Department under the Public Finance Management Act, 2019. The new scheme will be regulated in accordance with the Voluntary Pension System Rules, 2005, and the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
The rules replace the earlier directive issued in August 2024, which had set the government’s contribution at 20 per cent.
On August 20, 2024, the Finance Ministry had initially announced the introduction of a contributory pension scheme for newly recruited civil servants and armed forces personnel. Under the revised system, civil employees recruited on or after July 1, 2024, including those in civil defense, will be covered, while implementation for armed forces personnel is expected from July 1, 2025, pending formal approval.
To support the new pension structure, the government has allocated Rs10 billion for the 2024–25 budget and Rs4.3 billion for 2025–26.
Sources revealed that the scheme was introduced on the recommendation of the International Monetary Fund (IMF) and the World Bank to address the rising pension liabilities, which the government has termed a serious fiscal risk. The reform will not affect current employees but aims to slow the growth of future pension expenditures.
According to government estimates, federal pension spending is projected to reach Rs1.05 trillion in 2024–25, up 29 per cent from Rs821 billion in 2023–24. Pension liabilities for the armed forces are expected to rise 32 per cent, reaching Rs742 billion in 2025–26 compared to Rs563 billion in 2023–24.
For civil servants, pension allocations have increased by 6.6 per cent to Rs243 billion in the current fiscal year from Rs228 billion last year, reflecting modest savings due to the reforms.
Under the new rules, only authorized pension fund managers will manage the fund. The government, as an employer, will deposit 12 per cent of an employee’s pensionable salary through the Accountant General’s Office, which will also monitor record-keeping and fund transfers.
Employees’ 10 per cent contributions will be automatically deducted from their salaries, and both employee and employer contributions will be transferred to the Employer Pension Fund before salary disbursement.
Employees will not be allowed to withdraw pension funds before retirement. Upon retirement, they may withdraw up to 25 per cent of their accumulated savings, while the remaining amount will stay invested under the Voluntary Pension System Rules, 2002, until they complete 20 years of investment or reach the age of 80, whichever comes first.
Employee payslips will now include detailed pension contribution information, listing both the employee’s and employer’s shares along with the total accumulated balance. The Finance Ministry will allocate an annual budget for the government’s share and sign contracts only with pension fund managers that support electronic fund transfers. The agreements will also require insurance coverage in cases of death or disability, to be provided through the designated fund managers.
To supervise the scheme’s implementation, the Finance Ministry will establish a Non-Banking Finance Company (NBFC), which will initially operate in an interim capacity until formally constituted. Pension benefits in cases of retirement, resignation, dismissal, or early retirement will be determined according to government regulations.
The Contributory Pension Fund Scheme marks a major shift from the traditional defined-benefit model to a defined-contribution system, aiming to enhance financial sustainability and ensure long-term retirement security for future public sector employees.
Business
‘Swadeshi Campaign’ launch: Govt pushes to boost Indian textiles; domestic market demand expected at $250 billion by 2030 – The Times of India
The ministry of textiles has launched the ‘Swadeshi Campaign’ to boost domestic demand for handloom, handicrafts, and textile products across India. The initiative, which will run for six to nine months, aims to reposition Indian textiles as symbols of pride, style, and heritage, particularly among urban youth and Gen Z consumers. According to the government press release, the campaign’s objectives include stimulating domestic textile consumption, empowering weavers, artisans, and textile MSMEs, and aligning efforts with flagship government initiatives such as the PLI scheme for textiles, PM MITRA Parks, and One District One Product (ODOP). It will also encourage institutional procurement, urging ministries, PSUs, and educational institutions to adopt Indian-made textiles for uniforms and furnishings.
Awareness will be created through events, social media outreach, and partnerships with state governments. The campaign will run under the slogan: “स्वदेशी कपड़ा देश की शान—यही है भारत की पहचान” (Swadeshi fabric is the pride of the nation—this is India’s identity). India’s textile and clothing market, valued at $179 billion in 2024, is expanding at an average annual growth rate of over 7 per cent. Household consumption accounts for 58 per cent of the domestic market and is growing at 8.19 per cent annually, while non-household consumption contributes 21 per cent with 6.79 per cent growth. With the government’s continued initiatives and the Swadeshi Campaign, domestic demand for textiles is projected to grow at a CAGR of 9–10 per cent, reaching $250 billion by 2030.
Tess de la MareWest of England
PA MediaA major rail operator has been fined £1m for breaching health and safety law when a young woman suffered a fatal injury after placing her head outside a droplight window.
Bethan Roper, 28, was killed on a Great Western Railway (GWR) train near Twerton in Bath on 1 December 2018 when her head struck a tree branch.
Regulator the Office of Rail and Road (ORR) prosecuted GWR on the grounds it was aware of the issue of droplight windows, and had not yet implemented steps identified in a risk assessment undertaken two months before Ms Roper’s death.
GWR was fined and also ordered to pay £78,000 after pleading guilty to two counts of breaching health and safety law.
Richard Hines, ORR’s chief inspector of railways, said: “Our thoughts remain with the family and friends of Bethan Roper.
“Her death was a preventable tragedy that highlights the need for train operators to proactively manage risks and act swiftly when safety recommendations are made to keep their passengers safe.”
GWR told BBC West: “Bethan Roper’s death was a tragic incident, and our thoughts remain with her family and friends.
“We accept the judge’s decision and remain committed to continuously improving passenger and colleague safety across our network.
“In sentencing, the judge recognised our strong safety record both before and after this incident, and the safety of our passengers and colleagues remains our highest priority.”
Ms Roper, from Penarth in Wales, worked for the Welsh Refugee Council, was a Unite union convener and also chaired the Cardiff West branch of Socialist Party Wales.
She had been returning home from a Christmas shopping trip in Bath and was intoxicated when she boarded the train, an inquest held in 2021 heard.
PA/Cardiff School of JournalismInvestigators told the inquest that a yellow warning label above the window bearing the words “Caution do not lean out of window when train is moving” was an insufficient deterrent.
Ms Roper’s death echoed a similar incident in 2016 in which a passenger died near Balham, south London, resulting in the Rail Accident Investigation Branch (RAIB) issuing safety recommendations in May 2017.
GWR did not produce a written risk assessment until September 2017, but that assessment found droplight windows to be one of the most significant passenger safety risks.
The ORR found the assessment to be insufficient and wrote to GWR about its concerns.
However the assessment was not revised, and the actions GWR had set out to reduce the risk were not implemented before the fatal accident of 2018, the ORR said.
Since Ms Roper’s death, measures have been introduced across the rail industry to prevent passengers leaning out of droplight windows.
Trains with such windows have since been withdrawn from service or fitted with engineering controls to prevent windows being opened while trains are moving.
The ORR said it welcomed actions taken by GWR and the wider industry to reduce risk.
Harrods has set aside more than £60m in its plan to compensate alleged victims of historical abuse.
More than 100 employees of the luxury department store are expected to claim up to £385,000 each via the redress scheme which is open until March 2026.
The scheme, launched in March, provides to victims who claim they have suffered abuse by former Harrods owner Mohamed Al Fayed, who died in 2023.
Multiple women have accused Fayed, who owned the luxury store between 1985 to 2010, of rape and sexual assault. The Met Police said that 146 people have come forward to report a crime in their investigation into Fayed.
Harrods have set aside £57 million to be used to compensate alleged victims, with an extra £5.3m reserved to cover legal and administrative costs, bringing the total amount allocated to £62.3 million.
Harrods Managing director Michael Ward said that “more than 100 survivors” have joined the process of the scheme since it was opened.
He added: “Compensation awards and interim payments began being issued to eligible survivors at the end of April 2025 and the scheme will remain open until 31 March 2026.”
The compensation scheme will award each eligible claimant general damages of £200,000. They could receive up to £385,000 in compensation, plus treatment costs, if they agree to be assessed by a consultant psychiatrist, or up to £150,000 without a medical assessment, Harrods said in March.
Partially due to the scheme, Harrods recorded a £34.3 million loss in its latest full year accounts, compared with a profit of £111 million the previous year.
In a statement announcing the scheme, Harrods said: “While we cannot undo the past, we have been determined to do the right thing as an organisation, driven by the values we hold today, while ensuring that such behaviour can never be repeated in the future.”
To be eligible for the scheme, claimants must prove that they were subject to sexual assault and/or wrongful testing, and prove that Harrods is liable.
Many of those who say Fayed abused them underwent intrusive medical examinations when they were hired.
In accepting a compensation offer, victims will waive their right to pursue further action for damages.
The Harrods Group also operates smaller stores at London’s Heathrow and Gatwick airports, as well as a small chain of beauty stores. Revenues for the financial year 2024 were broadly flat at just over £1bn.
It blamed the drop in profits on weaker beauty trading and modernising some of its systems.
Mr Ward added: “The current domestic and global economic environment means that current trading conditions in the luxury sector remain challenging.
“However, we remain confident in the strength of the business, and the resilience of the luxury sector, and that we will continue to drive progress towards longer-term growth and performance objectives.”
Fayed was not charged before his death two years ago.
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