Karachi, September 11, 2025 – The Federal Board of Revenue (FBR) has provided significant relief to the Employees Old Age Benefits Institution (EOBI) by granting a tax exemption worth Rs17 billion on its income for the tax year 2024.
According to official figures, the exemption enjoyed by EOBI shows a sharp increase of nearly 70% compared to the Rs10 billion exemption recorded in the previous tax year. This jump underscores the growing financial scale of the institution and its critical role in supporting Pakistan’s social protection system.
The FBR clarified that income of EOBI remains exempt under clause 57(3)(v) of Part I of the Second Schedule of the Income Tax Ordinance, 2001. This legal protection ensures that funds collected and managed by the institution are channeled entirely toward the welfare of workers and not diverted through taxation.
EOBI, established in 1976, operates under the Ministry of Overseas Pakistanis and Human Resource Development. It serves as the country’s compulsory social insurance scheme, providing old-age pensions, invalidity pensions, survivor’s pensions, and old-age grants to registered employees and their dependents. Contributions are shared by employers and employees, with employers bearing a larger portion.
By exempting its income from taxation, authorities aim to strengthen the financial stability of EOBI, allowing it to expand coverage and continue serving millions of retired, disabled, or deceased workers’ families who rely on the institution for social security.