The government will establish a central provident fund (CPF) as Myanmar is spending more on pension expenses, said Union Minister for Planning and Finance Soe Win.

The minister revealed the information in his clarification on the ministry's activities in one year, which was featured in state-run newspapers.

"Pensions are paid from the State budget. As the number of pensioners increases and their life expectancy increases, we have to use spend more and more money. So as to reduce the burden and ensure a durable system, we will set up a CPF," said the minister.

The Ministry of Planning and Finance, Ministry of Construction and Construction Housing and Infrastructure Development Bank are working together and home loans have started by borrowing 15 billion yen from Japan.

Old pensioners will be paid the same pensions as the present civil servants are entitled to. Pensions are now paid under mobile payment system to save time and travel expense.

The notification issued by the Pension Department says pensions would increase as of January 2019.

Payment orders for 367,778 pensioners have been issued so far.