National Pension Authority to launch Shariah-compliant version of universal pension scheme

Bangladesh to Introduce Shariah-Compliant Universal Pension Schemes

The National Pension Authority (NPA) of Bangladesh is preparing to launch Shariah-compliant versions of its universal pension schemes in a bid to boost participation among devout Muslims.

The move will see Islamic alternatives introduced for all four existing schemes—Probash, Progoti, Shurokkha, and Somota. An international consultant has already been appointed for this purpose with funding support from the Asian Development Bank (ADB).

In addition to the Islamic versions, the NPA is considering integrating insurance benefits into the schemes. It also plans to expand coverage to include bank employees, MPO-enlisted teachers and staff, and others currently outside the system.

According to NPA sources, the absence of an Islamic-compliant option has discouraged many religious citizens from enrolling, slowing the pace of registration. Imams at mosques across the country have also been reluctant to promote the scheme due to the lack of Shariah alignment.

“We are a Muslim-majority country, and most people are religious-minded,” an NPA member told UNB. “Without Islamic options, many devout Muslims are not participating, which is affecting overall registration numbers.”

He added that a proposal outlining the framework for Shariah-compliant versions of the four active schemes has been requested for presentation at the next Pension Management Board meeting.

The appointed consultant is tasked with designing the implementation strategy for these Islamic schemes. Simultaneously, the NPA is working on incorporating insurance coverage, expanding the subscriber base, and seeking membership in the International Social Security Association (ISSA).