Cabinet approves 15pc hike in EOBI pensions
The move, aimed at sharpening accountability and turbo-charging service delivery, marks a renewed push by the government to shake off inertia in Islamabad's corridors of power.
Chairing a meeting of the federal cabinet, PM Sharif was emphatic: 'This message I want to make loud and clear – it is all about delivery and service to the nation.' Ministries exceeding expectations will be rewarded, while those falling behind could face consequences, he warned.
The prime minister singled out the Ministry of Planning and Development for praise, highlighting its efficient use of development funds. Spending under the Public Sector Development Programme (PSDP) has now crossed the Rs1 trillion mark – a milestone PM Sharif credited to Planning and Development Minister Ahsan Iqbal's stewardship.
In a nod to market confidence, PM Sharif welcomed the stock market's record-breaking performance this week, calling it a positive signal of macroeconomic recovery and investor trust. He insisted the uptick was the result of coordinated government efforts to stabilise the economy.
Among the cabinet's key decisions was a 15 percent increase in pensions under the Employees' Old-Age Benefits Institution (EOBI), effective from 1 January 2025. The raise, which will be funded internally by EOBI, was proposed by the Ministry of Overseas Pakistanis and Human Resource Development.
PM Sharif also ordered the formation of a cabinet committee to spearhead long-overdue institutional reforms in EOBI. The committee will explore extending pension coverage to Pakistan's vast informal workforce – including domestic workers, farm labourers, and other marginalised groups – in what could become a landmark shift in social security policy.
In the maritime sector, the cabinet approved legal proceedings to advance the Sea Carriage Shipping Documents Bill, 2025, as part of efforts to modernise trade documentation.
Meanwhile, a five-year extension was granted on the exemption of import duties for life-saving medicines – including anti-cancer and cardiac drugs – following a proposal from the Ministry of National Health Services. These medicines will continue to be restricted to hospitals and authorised institutions, with open-market sales remaining banned. Elsewhere, the cabinet ratified a series of legislative decisions taken by the Cabinet Committee on July 2 and 3.
On a sombre note, the prime minister expressed deep sorrow over the tragic loss of lives in the ongoing monsoon season, particularly the deadly incident in Swat. Calling it an unfortunate incident, he stressed the need for more robust disaster preparedness and response.
He said the federal government, in collaboration with the National Disaster Management Authority (NDMA) and provincial bodies (PDMAs), is working to strengthen emergency response systems across the country. He commended the NDMA, which is headed by a serving three-star military general, for its proactive role in disaster management. Finally, the prime minister lauded law enforcement and local administrations across the provinces, as well as in Azad Jammu and Kashmir and Gilgit-Baltistan, for ensuring peace and order during Muharram. Their coordinated efforts, he added, helped maintain national harmony during a critical time.
Copyright Business Recorder, 2025
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