Islamabad: Finance Minister Muhammad Aurangzeb said that the family pension duration has been restricted to 10 years after the spouse's death, and multiple pensions have been abolished. Upon re-employment after retirement, an individual will have to choose between pension and salary.

Pensioners under the age of 70 whose annual pension is more than Rs10 million will be charged 5% tax. However, those receiving low and middle-range pensions will be exempted from this tax.

To rectify the pension scheme and reduce the burden on the kitty, the government has introduced reforms, which include discouraging early retirement and linking pension increases to the Consumer Price Index (CPI).

Muhammad Aurangzeb, in his budget speech, revealed that the pension scheme had been modified through executive orders over the past few decades, which has put a burden on the national treasury.