Pensioners across Pakistan will now complete their biometric verification and proof-of-life certification through the National Database and Registration Authority (NADRA) instead of commercial banks, following a major overhaul of pension disbursement procedures issued by the Ministry of Finance.
The revised system, confirmed on September 9, 2026, removes commercial banks from the administrative burden of verifying, collecting or retaining biometric data and proof-of-life certificates for pensioners — a responsibility that will now sit entirely with NADRA.
How the New System Works
Under the revised procedures, NADRA will transmit pensioners’ digital life signals directly to the Controller General of Accounts (CGA) and the Military Accountant General (MAG) through a secure application programming interface (API). This means the verification data flows electronically between government systems, rather than being physically collected and processed at bank branches.
Commercial banks will continue to act as pension disbursement agencies — meaning pensioners will still receive their payments through their bank accounts — but banks are no longer responsible for the verification process itself. The government has also explicitly ordered banks not to mark pension accounts as dormant for the purposes of processing or disbursing pensions, meaning standard bank dormancy rules will no longer apply to pension accounts under these new procedures.
The End of Physical Verification Requirements
One of the more significant changes is the abolition of the physical “Disburser’s Half” process that was previously used for pension payments. Going forward, federal pensions will be paid exclusively through the Direct Credit System, cutting out a layer of paper-based processing that pensioners and banks previously had to manage.
For verification itself, pensioners can now use the NADRA PakID mobile application, or visit NADRA Registration Centers, Mobile Units, e-Sahulat franchises, or specific bank branches that operate as designated NADRA proof-of-life centers. Importantly, verification will now be required once every six months (180 days), replacing the older fixed schedule that required certification in March and September each year.
What Banks Can No Longer Require
The new procedures place explicit restrictions on what banks can ask of pensioners. Banks will not be permitted to require pensioners to visit a branch for routine proof-of-life verification, to collect physical life certificates or biometric information directly, or to impose debit restrictions on an account simply because a proof-of-life certificate hasn’t been submitted to that specific bank branch.
Additionally, pension accounts must now be opened only in the name of the pensioner or an eligible family pensioner — joint accounts are explicitly prohibited under the revised rules.
Provisions for Pensioners Who Can’t Use Digital Channels
Recognizing that not every pensioner has access to digital tools, the government has introduced a manual pathway for those who face barriers due to limited digital access, advanced age, or debilitating medical conditions. These pensioners, along with certain family pensioners whose marital or remarriage status hasn’t been updated in NADRA’s records, can submit manual verification forms through designated District Accounts Offices or Pension Facilitation Centres operating under the CGA or MAG. Notably, commercial banks are not authorized to process these manual forms directly — they must go through the designated government channels.
Oversight and Accountability Measures
The new system also introduces stricter administrative timelines. Pension rolls must now be generated by the 24th of each month and verified by the 26th, so that payments can be executed through the State Bank of Pakistan’s RAAST instant payment system or other approved micropayment channels. The entire system will be subject to quarterly audits, with NADRA records reconciled against accounts office and bank data to catch discrepancies early.
Banks have also been directed to reactivate any pension accounts that were marked dormant before August 22, 2026, either after NADRA verification through an authorized branch channel, or upon confirmation of pension receipt from the CGA or MAG starting September 2026. Any discrepancies flagged during the quarterly reconciliation process must be resolved within six weeks.
What Pensioners Should Do Now
Pensioners who have not yet used the NADRA PakID app or visited a NADRA verification center should plan to do so within their applicable six-month window. Those with limited digital literacy or mobility should identify their nearest District Accounts Office or Pension Facilitation Centre in case they need to use the manual verification pathway. Given that dormancy rules for pension accounts have changed, pensioners whose accounts were previously frozen should also check with their bank on the reactivation process outlined above.
Conclusion
This overhaul represents one of the more substantial administrative changes to Pakistan’s pension system in recent years, shifting verification responsibility away from a patchwork of individual bank branches to a centralized, technology-driven process run through NADRA. While the changes are designed to reduce friction for both pensioners and banks, the real test will be how smoothly NADRA’s digital infrastructure and the new manual pathways function once the six-month verification cycles begin rolling out nationwide. This digitization push mirrors other recent government efforts, including PESCO’s rollout of smart electricity meters and Punjab’s move to digitize housing society approvals.