Pakistan’s Finance Ministry removes banks from pensioner verification
In Pakistan, the Ministry of Finance has abolished the administrative role of commercial banks in the biometric verification of pensioners and the validation of life certificates. Banks are to remain pension payment agents, while pension accounts may not be moved to inactive status for the processing or payment of such funds.
As Dawn reports, the Ministry of Finance approved the updated standard operating procedures on the instructions of Prime Minister Shehbaz Sharif. The National Database and Registration Authority, Nadra, was integrated with the Controller General of Accounts and the Military Accountant General through a secure application programming interface. A digital life-verification signal will be transmitted directly to these bodies, bypassing banking channels.
Verification through Nadra
Pensioners will be able to undergo verification through the Nadra PakID mobile application or authorized Nadra channels, including registration centers, mobile units, e-Sahulat franchises, and bank branches that operate exclusively as Nadra centers for processing life certificates. Verification must be completed at least once every 180 days, without being tied to the previously established months of March and September.
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As part of regular pension account servicing, banks have been prohibited from collecting, storing, accepting, or verifying paper life certificates and pensioners’ biometric data. They also may not require pensioners to visit branches for standard biometric verification. If a person approaches a bank with paper documents, they must be directed to the PakID application or a designated Nadra center.
Payments and accounts
The physical paper-based Disburser’s Half procedure has been abolished, and federal pensions will be paid only through the direct crediting system. Banks must open pension accounts only in the name of the pensioner or a person entitled to a family pension; joint accounts are prohibited.
Accounts marked inactive before August 22, 2026, must be reactivated by banks after verification through the Nadra system at an authorized branch or after confirmation of a pension transfer from the Controller General of Accounts or the Military Accountant General from September 2026. Pensioners unable to use the mobile application due to a lack of digital access, advanced age, or health conditions may submit paper forms to a district accounts office or a pensioners’ support center.
