Pakistan implements new digital pension verification system

The federal government has introduced a revised procedure for digital proof of life and pension payments for retired civil servants. Under the new Standard Operating Procedure (SOP), commercial banks will no longer play a role in the biometric verification or authentication of Proof of Life Certificates (POLC).

Instead, the National Database and Registration Authority (NADRA) will be integrated with the Controller General of Accounts (CGA) and the Military Accountant General (MAG) via a secure API. This allows digital life verification signals to transfer directly from NADRA to the CGA and MAG, removing commercial banking channels from the administrative process. Commercial banks will now function solely as payment institutions.

Key changes include the elimination of the paper disburser half, as all federal pensions will be processed through the Direct Credit System (DCS). Additionally, banks are prohibited from marking pension accounts as dormant for the purposes of payment processing. Under the Receipt and Payment Rules 2025, pension accounts will not be declared dormant after August 22, 2026. The new system was developed in consultation with the State Bank of Pakistan, NADRA, and various accounts offices to streamline the process and strengthen verification.