Salman calls for well-established pension system for development
By Asad Cheema

ISLAMABAD—Advisor to the Prime Minister on Finance and Revenues , Dr.Salman Shah Friday said that a well established and well regulated pension system is a necessity for any country's social and economic welfare.
A good pension system ensures that all people contribute to the society, and that attaining old age does not make them a burden on their families or the national exchequer", he stated this while addressing a conference on 'Voluntary Pension System prospects and future challenges', here this Friday. The conference was organized by Securities and Exchange Commission of Pakistan (SECP).
The Chairman of the Commission Dr.Tariq Hassan also spoke on the occasion. A good pension system also ensures that the saving rate is increased, which is of critical importance in helping to maintain a higher level of investment in the country, he remarked.
This is a key determinant of economic growth, he said adding that higher investment rates, mainly financed by domestic savings are necessary to guarantee the sustained rates of economic growth required for the alleviation of widespread poverty. Dr.Shah said that these savings provide a great base for the financial markets to grow on.
I believe that these pension funds will act as catalysts for the development of capital markets", he remarked. The Advisor to the Prime Minister on Finance said that all the funds in the System would be with professional fund managers who will invest them in stocks, bonds, or money market instruments. He added that given the long term nature of these pension-relatedinvestments, "we are provided with a great opportunity to introduce new, longer tenor financial instruments, to improve the performance of the existing markets and to develop the bonds market.
Dr.Shah said that the Government's current privatization policy is playing a huge role in the expansion of the markets that will be needed by the pension funds.
Both pension fund participation in equity and privatization of public sector enterprises should go on side by side so that both have very good chances of success", he remarked. The Advisor to the Prime Minister on Finance said that all the funds in the System would be with professional fund managers who will invest them in stocks, bonds, or money market instruments. He added that given the long term nature of these pension-related investments, "we are provided with a great opportunity to introduce new, longer tenor financial instruments, to improve the performance of the existing markets and to develop the bonds market.