The federal government has removed commercial banks from the administrative process of biometric verification and proof of life certification for pensioners, introducing revised procedures aimed at simplifying pension verification and reducing the administrative burden on retirees.
Under the new system issued by the Ministry of Finance, the responsibility for pensioners’ life verification will shift to the National Database and Registration Authority (NADRA).
NADRA will transmit pensioners’ digital life signals directly to the Controller General of Accounts (CGA) and Military Accountant General (MAG) through a secure application programming interface.
Commercial banks will now primarily serve as pension disbursement agencies rather than being responsible for collecting, verifying, retaining or validating biometric information and proof of life certificates.
NADRA to handle proof of life verification
Under the revised procedures, pensioners will be able to complete their proof of life verification through NADRA’s PakID mobile application and other authorised NADRA channels.
These include NADRA Registration Centres, Mobile Units, e-Sahulat franchises and selected bank branches that operate specifically as NADRA proof of life centres.
The verification will now be required once every six months, or 180 days, instead of following the previous fixed March and September schedule.
The change is intended to provide pensioners with greater flexibility while shifting the core verification responsibility away from commercial banks.
Banks cannot demand routine branch visits
The revised procedures also restrict banks from requiring pensioners to visit branches for routine proof of life verification.
Banks will not normally be allowed to collect physical life certificates or biometric information from pensioners as part of the routine verification process.
They also cannot impose debit restrictions on pension accounts simply because a proof of life certificate has not been submitted directly to the bank.
The government has further clarified that pension accounts should be opened only in the name of the pensioner or eligible family pensioner, meaning joint pension accounts are prohibited under the revised procedures.
Pension accounts will not be marked dormant
Another major change concerns the treatment of pension accounts.
Banks have been directed not to mark pension accounts as dormant for the purpose of processing or disbursing pension payments. Standard bank dormancy requirements will therefore not apply to pension accounts under the revised procedures.
The government has also instructed banks to reactivate pension accounts that were marked dormant before August 22, 2026.
Reactivation can take place after NADRA verification through an authorised branch channel or following confirmation from the CGA or MAG that pension payments have been received from September 2026 onward.
Direct Credit System replaces physical process
The government has also abolished the physical Disburser’s Half process that was previously used for pension payments.
Federal pensions will instead be paid exclusively through the Direct Credit System.
The revised procedures were prepared in consultation with several institutions, including the State Bank of Pakistan, Accountant General Offices, NADRA and the Ministry of Finance.
The shift toward direct electronic payments is intended to streamline pension disbursement and reduce reliance on physical documentation and manual processes.
Manual verification available for some pensioners
The government has also introduced an alternative process for pensioners who are unable to use digital verification channels.
This includes people facing limited digital access, advanced age or debilitating medical conditions.
Certain family pensioners whose marital or remarriage information has not been updated in NADRA records may also use the manual process.
Such pensioners can submit the required forms through designated District Accounts Offices or Pension Facilitation Centres operating under the CGA or MAG.
Commercial banks will not be permitted to process these manual forms directly.
The arrangement is intended to ensure that pensioners who cannot conveniently use mobile applications or digital services are not excluded from the verification system.
Pension verification to become more frequent
Although the fixed March and September verification schedule has been removed, pensioners will still need to complete verification every 180 days.
The new system will therefore rely on a rolling six-month verification cycle rather than two fixed annual dates.
This approach could give pensioners more flexibility in completing the process while allowing NADRA to provide updated life-status information directly to the relevant accounts offices.
New monthly pension processing schedule
The revised procedures also establish specific timelines for pension processing.
Pension rolls are required to be generated by the 24th of each month and verified by the 26th before payments are executed.
Payments will be processed through the State Bank of Pakistan’s RAAST system or other micropayment channels.
The government has also introduced quarterly audits and reconciliation procedures to compare NADRA records with information held by accounts offices and banks.
Any discrepancies identified during the reconciliation process will have to be resolved within six weeks.
Government seeks greater efficiency
The revised pension procedures represent a significant change in the way pensioner verification and disbursement will be managed.
By placing proof of life verification primarily under NADRA while limiting banks to their role as pension disbursement agencies, the government aims to create a more centralised and digitally connected system.
The changes could particularly benefit pensioners who previously had to visit bank branches for verification-related requirements.
At the same time, alternative manual channels have been retained for pensioners who face difficulties accessing digital services.
The new framework is expected to bring greater coordination between NADRA, government accounts offices and banks while strengthening monitoring of pension payments through digital verification and regular reconciliation.
