Can Pakistan's Federal Pensioners Living Abroad Get Pension in Foreign Currency? Only If Appointed Before 1959
Federal pensioners living abroad cannot draw pension in foreign currency unless appointed before 2 January 1959. See the 2024 rule and how to keep pension paid.
No. A federal government pensioner living abroad cannot draw the pension in dollars, pounds or riyals. The Finance Division ruled on 28 August 2024 that only pensioners appointed before 2 January 1959 can get pension in foreign exchange. Everybody else is paid in rupees, into a bank account in Pakistan.
We read the Finance Division's memorandum No. F.6(1)Reg-7/2014-205 on its circulars page on 7 November 2026. It was sent to the Controller General of Accounts, the Military Accountant General and the Foreign Office accounts chief, and copied to every ministry, department and autonomous body. Below is what it says, who it covers, and what a pensioner who has moved to Canada, the UK or the Gulf should do instead.
Pension in foreign exchange is closed to anyone appointed after 1 January 1959
The Civil Service Regulations, in sections CSR 966 to 973, allow pension in foreign exchange for pensioners who settle abroad after retirement. The Finance Division says those provisions are meant only for people appointed before 2 January 1959. Anyone appointed on or after that date is not entitled.
The memorandum tells accounts offices to make sure that no pensioner appointed on or after 2 January 1959 is allowed to draw pension in foreign exchange. It also asks for the order to be widely publicised. In practice, a person appointed in 1959 would be in their late eighties or older today, so the rule closes the door for almost every living federal pensioner.
| Your case | Pension in foreign exchange? | How you are paid |
|---|---|---|
| Appointed before 2 January 1959, living abroad | Allowed under CSR 966 to 973 | Through the procedure of 17 November 1980, via a Pakistani mission |
| Appointed on or after 2 January 1959, living abroad | Not allowed | In rupees, into a bank account in Pakistan |
| Living in Pakistan | Not applicable | In rupees, by direct credit |
The Finance Division gave two reasons
The memorandum says Pakistan's current account position does not allow the federal government to let pensioners abroad draw pension in foreign exchange. It also says that with digital banking reachable worldwide, there is no need for that permission any more.
The current account is the balance of what Pakistan earns from and pays to the rest of the world. Paying pensions in foreign currency drains dollars from the country's reserves. The second reason is practical: a pensioner in Toronto can see and use a Pakistani bank account online, so the old system of paying through embassies is no longer needed.
The memorandum also records that several pensioners abroad were already drawing, or trying to draw, pension in foreign exchange. That is what prompted it. The older procedure it refers to, Finance Division memorandum No. F.1(10)EF(B.II)/79-2340 of 17 November 1980, paid such pensions through Pakistani missions abroad.
What to do if you live abroad and draw a federal pension
Keep a bank account in Pakistan open and in your own name, because federal pensions are paid by direct credit into an account. The steps below keep the money flowing while you are away. None of them needs a trip home.
- Keep your Pakistani bank account active, with online or mobile banking turned on, so you can see each pension credit.
- Give your proof of life through NADRA every six months. The Pak-ID app works from abroad, and the rules for it are in the NADRA pension proof of life.
- Keep your CNIC or NICOP valid, because NADRA verification and the bank both rely on it.
- Tell your accounts office, AGPR or the Military Accountant General, if your phone number or address changes.
- Name a nominee and keep family papers updated, so family pension can start without delay if needed.
Moving money from that account to the country where you live is a banking question, not a pension one. Ask your bank about its own rules and charges for sending money abroad before you rely on it.
Your pension amount and increases stay the same abroad
Living abroad does not cut the rupee pension. The yearly increases the federal government grants apply to you as to any pensioner. The latest is 7 per cent on the baseline pension from 1 July 2026, under the Finance Division's memorandum of 29 July 2026.
How that increase works on your own pension is in the 2026 federal pension increase. Pension income in Pakistan also has its own tax position, and a pensioner who still files a return should read filing a tax return as a pensioner, which covers the rate on pension income.
This order is federal, and military pensions come under it too
The memorandum was addressed to the Controller General of Accounts, the Military Accountant General and the Foreign Office accounts chief. So it covers federal civil pensioners paid by AGPR and its sub-offices, and armed forces pensioners paid through the Military Accountant General.
Provincial pensioners are paid by provincial accountants general under provincial orders. We did not find a provincial version of this rule, so a retired Punjab or Sindh employee living abroad should ask the provincial accountant general how it treats foreign exchange requests.
Common questions
Can a federal pensioner living abroad get pension in dollars?
No, unless they were appointed before 2 January 1959. Everyone else is paid in rupees into a Pakistani bank account, under the Finance Division's memorandum of 28 August 2024.
Will my pension stop if I move abroad?
No. The memorandum only stops payment in foreign exchange. Your pension continues in rupees, as long as you keep giving proof of life.
Can I give proof of life from abroad?
Yes. Federal pensioners verify through NADRA every six months, and the Pak-ID app can be used from outside Pakistan.
Does this rule apply to army pensioners?
The memorandum was sent to the Military Accountant General, which pays armed forces pensions, so it applies to them as well.
Why did the government stop pension in foreign exchange?
The Finance Division cited Pakistan's current account position, and said worldwide digital banking makes payment through missions unnecessary.
What we read
We read Finance Division memorandum No. F.6(1)Reg-7/2014-205 of 28 August 2024, "Payment of pensions in foreign exchange to those who are residing abroad", on its circulars page on 7 November 2026. It is a scan. We did not read the 1980 procedure it refers to or the CSR sections themselves. The steps for living abroad are our own practical advice, built on the proof of life rules we read earlier from the State Bank.
About the author
Tax, Bills and Technology Writer
Ali Akhtar is a young and curious voice here at Pakistan Era. He is currently pursuing his A-Levels and has a growing interest in Pakistan’s changing industrial landscape and educational trends. Ali likes to write in a way that helps him explain and explore the world around him. His writing reflects the perspective of the new generation navigating the evolving trends of Pakistan where technology, youth innovation, and shifting opportunities are reshaping the country’s future.
