Cabinet okays 15pc increase in EOBI pensions

The federal cabinet on Wednesday okayed a 15 per cent increase in pensions provided by the Employees Old Age Benefits Institution (EOBI), with the hike set to take effect from January 2025.

The approval came during a cabinet meeting chaired by Prime Minister Shehbaz Sharif.

The Ministry of Overseas Pakistanis and Human Resource Development, which will oversee the implementation of the pension hike, had made recommendation in this regard.

The prime minister also directed the formation of a Cabinet Committee on Institutional Reforms in the EOBI. The committee will explore structural reforms and develop proposals to extend old-age benefits to workers in the informal sector, including domestic workers, agricultural laborers, and others traditionally excluded from the formal social security net.

Separately, the cabinet approved a five-year exemption on the import of anti-cancer, cardiac, and other life-saving medicines used in hospitals and health institutions, as proposed by the Ministry of National Health.

The exemption applies exclusively to institutional use; retail sale in open markets will remain prohibited. Importers will require prior approval from the licensing authority.