The government will present a detailed outline of the private sector pension scheme in the next budget but it will be implemented by the next government, Finance Minister AMA Muhith said.

“I will give the outline of the universal pension scheme in the next budget,” he told reporters after the first pre-budget meeting at the Padma guest house on Monday night. The pre-budget meeting was held with chairmen of the parliamentary standing committees, ministers, economists and business representatives.

Earlier in his budget speech in June 2016, Muhith said the existing pension system would be reformed and an initiative would be taken to introduce a pension system in the private sector.

Two months later, the finance minister held a high-level meeting over the matter complete with a concept paper from the finance division.

The government will introduce a universal pension system for both public and private sector employees, according to the concept paper.

For this, several subsidiary institutions will have to be established, including pension enrolment office, pension trust, custodian, central record keeping agency, trustee bank, pension fund managers and annuity service providers.

A new pension office will be established for reforming the existing pension system.  Besides, a pension cell will be formed in the finance division for preparing a revised draft law for the pension scheme.

A pension authority will be formed to bring all the citizens under the scheme.

A finance ministry official said they have already examined the pension systems of other countries, discussed the matter with stakeholders and formed a draft proposal.

The draft may be placed in the cabinet meeting after further scrutiny.

Private sector jobholders will primarily make a voluntary contribution to their pension fund, which will be provided to them in future.

If a person resigns from an organisation and joins another, his contributory fund will be transferred, he added.

GAS PRICE HIKE

Also on Monday Muhith said the gas price will be hiked in future. However, before increasing the price opinions of the stakeholders will be taken.

He also said the new monetary policy, which was unveiled on Monday, will have no impact on investment and inflation. 

The minister said he hopes that this year the country's gross domestic product will grow at 7.5 percent.

In response to a question on whether the credit control by the central bank will raise the interest rate, Muhith said: “The rate of interest on deposit has already reached two digits.”

The size of next fiscal year's budget will be less than Tk 4.68 lakh crore, he added.