The federal government has completely removed the role of commercial banks in verifying the proof of life for pensioners across Pakistan, shifting the entire process to a digital system managed by NADRA. The Finance Division recently issued a revised Standard Operating Procedure that moves verification away from bank branches entirely, with NADRA now linking directly with the Controller General of Accounts and the Military Accountant General to confirm pensioner status through electronic means rather than in person visits.
Under the new mechanism, introduced following directives from the Prime Minister, NADRA transmits what officials are calling a Digital Life Signal directly to the CGA and MAG through a secure API, bypassing commercial banking channels altogether. As a result, pensioners no longer need to visit banks for routine biometric verification or submit physical Proof of Life Certificates, and the government has also abolished the traditional paper based Disburser’s Half process, with digital ledgers maintained by the CGA and MAG replacing those older paper records. Pensioners are now required to verify their proof of life at least once every six months, or within a 180 day window, a change from the previous system that required verification strictly during fixed periods in March and September. To complete verification within this more flexible timeframe, pensioners can use the NADRA Pak-ID mobile application, visit NADRA Registration Centres or Mobile Units, or make use of e-Sahulat franchises located across the country.
The revised SOP also places strict new limits on what commercial banks are permitted to do, restricting their role solely to pension disbursement rather than any involvement in collecting or validating biometric data. Banks have been legally barred from making pension accounts dormant or forcing pensioners to visit branches for biometric checks, and if a pensioner brings physical documents to a bank branch, staff are now required to redirect them to the Pak-ID application or a designated NADRA facility instead of processing the paperwork themselves. Pension accounts must remain free of service charges and are required to be held solely in the name of the pensioner or an eligible family member, with joint accounts prohibited except under specific provisions of the Federal Government Receipt and Payment Rules, 2025. To speed up disbursement, the CGA and MAG will generate pension rolls by the 24th of each month and verify them by the 26th, with payments then executed through RAAST or other micropayment channels.
The new SOP additionally introduces a Suspense Status mechanism that comes into effect if the CGA or MAG does not receive a valid Digital Life Signal for six consecutive months, temporarily holding pension payments without formally declaring the account dormant. Once a valid life signal is subsequently received, the account automatically returns to active status and accrued pension arrears are released without requiring separate bank approval. The government has also retained a manual fallback option for elderly pensioners or those with limited digital access or debilitating medical conditions, allowing them to submit manual Life Certificates or family pension declarations at designated District Accounts Offices or Pension Facilitation Centres, though commercial banks remain barred from accepting these forms under the revised rules. Officials described the overall goal of the changes as simplifying pension disbursement, reducing unnecessary bank visits, enabling real time verification, and cutting down on fraudulent pension payments across the system.
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