ISLAMABAD: The Pakistani government has introduced the Pensioner Benefit Account (PBA), a specialized savings initiative designed to provide a stable monthly income to retired employees from various government sectors.
Eligible individuals include pensioners and their families, in case of the pensioner’s death, from federal, provincial, Azad Jammu & Kashmir, armed forces, semi-government, and autonomous bodies.
To invest in a PBA, individuals must meet the minimum investment requirement of Rs 10,000, with a maximum limit of Rs 7,500,000. Investors can make up to seven subsequent deposits; however, no more than eight deposits are allowed, and only one account is permitted per person across Pakistan.
The PBA offers several attractive benefits, including a stable monthly income through profits earned every month for a 10-year maturity period. Currently, the account holders can earn a profit rate of 14.16% or Rs 1,180 on every Rs 100,000 investment.
Additionally, profits earned on PBA deposits are exempt from withholding tax, and investments made in this account are also exempt from Zakat.
Recently, the Savings Directorate revised the profit rate for various products, including the PBA. This revision aims to ensure that retired employees continue to benefit from attractive returns on their investments.
By investing in a PBA, retired employees can secure a stable financial future and enjoy attractive profits without worrying about taxes or Zakat deductions.
Overall, the Pensioner Benefit Account provides a secure and attractive savings option for retired employees, helping them maintain financial stability during their golden years.
