ISLAMABAD: Government of Pakistan has introduced a new system of digital NADRA pension verification, according to which around 1.7 million federal and provincial pensioners will be required to prove their “proof of life” using biometric and facial recognition technology prior to making their payments. In order to achieve this purpose, the new system will utilize Pak ID app on the side of the pensioner, while on the other hand it will use NADRA’s “e-Sahulat” app on the side of the banks.
State Bank of Pakistan has been ordered to issue mandatory guidelines to all commercial banks for linking to the system of NADRA, which will result in all branches of the commercial banks responsible for paying pensions being linked to the NADRA API system “Nishan Pakistan” and the application e-Sahulat prior to disbursing the pensions. This new policy on pension verification by NADRA is based on the decision of the Prime Minister’s Office and marks one of the most important innovations in pension management in Pakistan.
Two-sided digital verification structure provided by Pak ID and e-Sahulat
There is a very clear two-sided structure for the pension verification system implemented by NADRA. The first side of the two-sided structure involves the pensioner, who uses the Pak ID app to make proof of life updates, which involves using biometric identification and face recognition to prove that the pensioner is alive and able to collect payments. On the other side of the structure lies NADRA’s e-Sahulat app, which banks access to verify the pension payment process.
Both of these processes will be used to determine whether individuals qualify for their pensions in the form of two different NADRA systems, the Proof of Life certificate and the Family Registration certificate. The use of these certificates will make sure that the NADRA pension verification system will consider not only an individual’s status but also his/her family status in relation to their pension eligibility.
Before any pension payments can be made, banks have to interface with Nishan Pakistan API
Each bank branch involved in pension disbursals in Pakistan has to link up with NADRA’s “Nishan Pakistan” API program and e-Sahulat software. The State Bank of Pakistan will force this compliance through its commercial bank guidelines. Various elements of NADRA’s pension verification system have been implemented, but the key outstanding component is linking the banks to enable the system to function fully.
After banks have completed the process of integrating APIs into the system, there will be real-time digital authentication of all pensioners during each payment cycle, replacing the current method of authentication based on papers and physical visits to the bank branches.
ALSO READ: Govt to Launch Home-Based Online Passport Application System
Approval by the Finance Division for updated cost model of NADRA
The government has forwarded a proposal for approval of an updated cost model whereby the fees for services offered through NADRA’s pension verification scheme would be waived. The new cost optimization model includes the services of both Proof of Life Certificate and Family Registration Certificate into one fee arrangement, hence reducing costs to the pension management system without compromising the verification process provided through both certificates.
The approval by the Finance Division is the last major administrative hurdle for the implementation of the entire NADRA pension verification system that will help link up the technological architecture being created by NADRA with the financial model that will make this project commercially viable for everyone involved.
Digital verification will help reduce fraud and bring about modernization of pension system in Pakistan
NADRA’s Pension Verification System is designed to make three very clear changes to how the pension scheme of Pakistan works. These include the increased level of transparency, elimination of the need for manual verification, and modernization of disbursement procedures within the framework of pension programs at both the national and provincial levels. The requirement of facial recognition and biometric data before each payment eliminates the issue of ghost pensioners, which has been leaching away pension funds for many years now.
For Pakistan’s 1.7 million pensioners, the NADRA pension verification process entails downloading the Pak ID app and registering their biometric data if they have not done so before, because only by doing so can their pension disbursements be guaranteed, or they will otherwise get suspended until verification is completed.
