Key Takeaways
- Commercial banks' role in biometric verification of pensioners is minimized.
- Pension accounts will not be subject to dormancy requirements.
- Digital proof-of-life certificates will be issued directly by Nadra.
The federal government has streamlined the process of pension disbursement by minimizing the role of commercial banks in biometric verification and validation of proof-of-life certificates (PoLCs).
In a move aimed at facilitating pensioners, the finance ministry has issued revised standard operating procedures (SOPs) that integrate the National Database and Registration Authority (Nadra) with the Controller General of Accounts (CGA) and Military Accountant General (MAG) via a secure application programming interface (API).
Under the new SOPs, commercial banks will serve solely as 'pension disbursement agencies' and will have no statutory or administrative role in the verification, collection, retention, or validation of PoLCs or biometric data under ordinary circumstances.
The only exception is when banks act strictly as an authorised operational conduit through Nadra’s designated system for generating PoLCs. This change is expected to make the process more convenient for pensioners while strengthening verification mechanisms.
Furthermore, pension accounts will no longer be marked as dormant for the purposes of the Federal Government Receipt and Payment Rules, 2025. Standard bank dormancy requirements are non-applicable to pension accounts.
Pensioners will be able to complete PoLC verification via the Nadra PakID mobile app or authorised Nadra channels such as Registration Centers, Mobile Units, e-Sahulat franchises, or bank branches operating strictly as Nadra PoLC centers. Verification must occur at least once every six months or 180 days.
Family pensioners drawing pensions, subject to marital status conditions, must submit Form-12 declarations as required. Account transfers must be routed through the target scheduled bank, while overpayments or discrepancies must be reported directly to the relevant accounts office and the bank.
The revised SOPs were developed in consultation with all stakeholders, including the State Bank of Pakistan, Accountant General Offices, Nadra, and the finance ministry, to facilitate pensioners through a more convenient mechanism while strengthening verification.
