In Pakistan there is currently a pensions crisis because the government did not plan pensions of public sector employees efficiently. Instead of raising funds from lifetime earnings of employees, and...

In Pakistan there is currently a pensions crisis because the government did not plan pensions of public sector employees efficiently. Instead of raising funds from lifetime earnings of employees, and giving pensionsas returns on savings, pensions currently require budgetary allocation in Pakistan, leading to financial burden on government.

In developed countries like the US, where people plan their own pensions this planning for retirement requires a lot of effort, forward thinking and knowledge of financial opportunities. Even then pensions are never completely secure in the US.So, this system is not entirely suitable in Pakistan.

1. 
   Examine the Pension Crisis from perspective of Permanent Income Hypothesis and its modern versions to explain the possible causes of this crisis.
   


2. 
   Related to causes in part I suggest solutions to the pension crisis in Pakistan