Cabinet approves 15% increase in EOBI pensions effective from Jan 1, 2025

ISLAMABAD: The federal cabinet on Wednesday approved a 15% increase in pensions provided by the Employees’ Old-Age Benefits Institution (EOBI), effective from January 1, 2025.

The decision was made on the recommendation of the Ministry of Overseas Pakistanis and Human Resource Development and will be funded from EOBI’s own resources.

The cabinet meeting, chaired by Prime Minister Muhammad Shehbaz Sharif, also decided to form a committee to introduce institutional reforms in EOBI.

The committee will also deliberate on proposals to extend old-age benefits to the informal labor sector, including domestic workers, agricultural laborers, and other marginalized employment categories that have been previously overlooked.

The reforms aim to ensure that these underserved groups receive the social security they deserve.

Additionally, the cabinet approved the initiation of legal procedures for the draft Sea Carriage Shipping Documents Bill, 2025, based on a recommendation from the Ministry of Maritime Affairs.

On the recommendation of the Ministry of National Health Services, the cabinet approved a five-year extension of exemption on the import of anti-cancer, cardiac, and life-saving drugs used in hospitals and related healthcare institutions.

These medicines are considered vital for saving human lives, and the exemption is intended to ensure their prompt availability.

These drugs will be available only in hospitals and authorized institutions, with a ban on open market sales. Import of these medicines will require prior approval from the relevant licensing authority.

The federal cabinet also endorsed the decisions made in the meetings of the Cabinet Committee on Legislative Cases held on July 2, 2025, and July 3, 2025.

Earlier addressing the cabinet, the prime minister commended the efforts of all provincial governments, the federal administration, as well as authorities in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) for making the best possible arrangements during Muharram.

He also expressed gratitude to the law enforcement agencies and all stakeholders for maintaining law and order during the religious observances.

The prime minister also spoke about disaster preparedness amid the ongoing monsoon season. He said he had chaired a high-level meeting with the National Disaster Management Authority (NDMA) and Provincial Disaster Management Authorities (PDMAs) to ensure best arrangements. He commended the efforts of NDMA for making arrangements to cope with heavy rains in different parts of the country.

He expressed sorrow over the loss of lives due to heavy rainfall in various parts of the country, specifically the tragic incident in Swat. He said it was an unfortunate incident and emphasized the need to learn lessons from it and implement measures to prevent similar tragedies in the future.

On the economic front, PM Shehbaz expressed satisfaction over the recent positive trends in macroeconomic indicators. He reiterated his government’s focus on performance and service delivery, announcing that the performance of ministries would be evaluated every two months.

“This message I want to make loud and clear—it is all about delivery and service to the nation,” the prime minister stressed. He added that ministries performing well will be acknowledged and appreciated, while those falling short will be held accountable and asked to explain.

During the meeting, he also praised Federal Minister for Planning Ahsan Iqbal for his ministry’s effective utilization of development funds, noting that the development spending had reached over Rs 1 trillion under the Public Sector Development Programme (PSDP).