Pakistan streamlines pension payments with digital verification
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The Finance Ministry of Pakistan eliminated commercial banks’ role in verifying pensioners’ proof of life, shifting the responsibility to the National Database and Registration Authority (Nadra).
Previously, banks handled biometric verification and validation of proof-of-life certificates (PoLCs). Now, Nadra will transmit digital life signals directly to the Controller General of Accounts (CGA) and Military Accountant General (MAG), bypassing banks. Commercial banks will now only distribute pension payments.
The government also instructed banks not to declare pensioners’ accounts dormant, a common practice when accounts are inactive. This change applies to the Federal Government Receipt and Payment Rules, 2025, ensuring continuous pension access. The Ministry of Finance developed these new procedures with input from the State Bank of Pakistan, Nadra, and other relevant offices to simplify the process for pensioners.
Pensioners can now verify their status using the Nadra PakID mobile app, Nadra registration centers, or designated bank branches acting as Nadra PoLC centers, completing verification at least every six months. The government abolished the previous physical documentation process, moving entirely to the Direct Credit System (DCS) for pension disbursement. Banks must open accounts in the pensioner’s name only, prohibiting joint accounts, and are barred from collecting or retaining physical life certificates.
