Islamabad, July 16, 2025 – The federal cabinet on Wednesday approved a 15% increase in monthly pensions distributed by the Employees’ Old-Age Benefits Institution (EOBI), a move that will directly benefit hundreds of thousands of retired workers across Pakistan.
The increase, which takes effect from January 1, 2025, was recommended by the Ministry of Overseas Pakistanis and Human Resource Development and will be financed through EOBI’s internal resources.
The cabinet meeting, chaired by Prime Minister Muhammad Shehbaz Sharif, marked a major policy step towards improving the social security net for the country’s aging workforce. During the session, the prime minister also directed the formation of a cabinet committee to introduce institutional reforms in EOBI, with a strong emphasis on expanding coverage to Pakistan’s vast informal labor sector.
The proposed reforms aim to include domestic workers, agricultural laborers, and other marginalized employment categories within the fold of EOBI. The prime minister stressed that every worker in Pakistan, regardless of their job classification, deserves retirement support and dignity in old age. The new committee will present its findings and recommendations for legislative and administrative changes in the coming weeks.
The cabinet also addressed several other key matters. On the recommendation of the Ministry of Maritime Affairs, it approved the initiation of legal procedures for the Sea Carriage Shipping Documents Bill, 2025. Separately, the cabinet gave a five-year extension on the exemption of duties on the import of life-saving drugs—including those for cancer and cardiac conditions—based on the proposal of the Ministry of National Health Services. These medications will be restricted to use in hospitals and licensed institutions only.
On the law and order front, PM Shehbaz commended the efforts of provincial and federal agencies, including those in AJK and GB, for ensuring peaceful observance of Muharram. He also emphasized the importance of disaster preparedness and praised NDMA and PDMAs for their proactive response to monsoon-related challenges.
Reaffirming his administration’s commitment to service delivery, the prime minister announced a bi-monthly performance review of all ministries. He praised the Ministry of Planning, led by Ahsan Iqbal, for effective utilization of development funds under the PSDP.
The approval of the EOBI pension increase was welcomed widely, as it demonstrates the government’s intention to strengthen the country’s retirement system and broaden the reach of EOBI’s services to underserved segments of the workforce.