Federal Cabinet Approves 15% EOBI Pension Increase, Focuses on Institutional Reforms and Healthcare Support
ISLAMABAD – In a significant step toward social welfare, the federal cabinet has approved a 15% increase in pensions provided by the Employees’ Old-Age Benefits Institution (EOBI), effective January 1, 2025. This raise, funded through EOBI’s own resources, was recommended by the Ministry of Overseas Pakistanis and Human Resource Development.
Chaired by Prime Minister Shehbaz Sharif, the cabinet meeting also included directives for forming a committee to propose institutional reforms in EOBI. The goal is to expand coverage of old-age benefits to include the informal labor sector, such as domestic workers, agricultural laborers, and other marginalized employment groups.
Key Decisions and Approvals
1. Institutional Reforms in EOBI
The newly proposed reforms aim to provide financial security to previously excluded workers, ensuring that all citizens receive their rightful benefits as they age.
2. Sea Carriage Shipping Documents Bill 2025
On the Ministry of Maritime Affairs’ recommendation, the cabinet approved the initiation of legal procedures to draft the Sea Carriage Shipping Documents Bill, 2025, aimed at modernizing maritime trade laws.
3. Extension of Life-Saving Drug Import Exemptions
A five-year extension on tax exemptions for importing anti-cancer, cardiac, and life-saving drugs was approved. These medications will remain restricted for use in hospitals and licensed institutions, with a ban on open-market sales. Prior approval from relevant health authorities will be mandatory for all imports.
4. Legislative Approvals
The cabinet ratified decisions from recent Cabinet Committee on Legislative Cases meetings held on July 2 and 3, 2025, further pushing forward the legislative agenda.
PM Commends Muharram and Monsoon Preparedness
Prime Minister Shehbaz Sharif praised the efforts of provincial governments, the federal administration, and authorities in AJK and Gilgit-Baltistan for ensuring peaceful Muharram observances. He extended gratitude to law enforcement agencies for maintaining law and order.
Regarding monsoon preparedness, the prime minister acknowledged the National Disaster Management Authority (NDMA) and Provincial Disaster Management Authorities (PDMAs) for their proactive measures in response to heavy rainfall and flash floods. Expressing sorrow over lives lost—particularly in Swat—he emphasized the need for future prevention.
Economic Outlook and Government Performance
On the economy, PM Shehbaz noted positive macroeconomic trends and reaffirmed his administration’s commitment to performance and service delivery. He announced that ministries’ performance will be reviewed bi-monthly, ensuring accountability.
“This message I want to make loud and clear—it is all about delivery and service to the nation,” the Prime Minister said.
He also commended Federal Minister for Planning Ahsan Iqbal for efficient allocation and utilization of development funds, highlighting that over Rs1 trillion had been spent under the Public Sector Development Programme (PSDP).
