This paper attempts to study the civil service pension systems of South Asia Association of Regional Cooperation using the data from 1971-2017. It assesses the patterns in the pension expenditure of member countries while finding the relationship between this expenditure and demographic changes both at the regional and country level. The paper uses Mean Group and Pooled Mean Group estimator techniques and employs the Auto Regressive Distributed Lags (ARDL) model both in the short run and long run. The paper finds that the population ageing in the SAARC region has statistically significant positive relationship with the pension expenditure in the region while the dynamics of population ageing differ from country to country in the short run. Supervisor:- Dr. Saud Ahmed Khan