ISLAMABAD: In a major relief package, the federal cabinet has approved a 15 per cent increase in pensions under the Employees’ Old-Age Benefits Institution (EOBI) and granted a five-year exemption on life-saving drugs, including those for cancer and cardiac diseases.
The cabinet met under the chairmanship of Prime Minister Shehbaz Sharif on Wednesday.
According to the statement issued after the meeting, the EOBI pension hike will come into effect from January 1, 2025, and the financial responsibility for the increment will be borne by the institution itself.
In April, the EOBI had announced to raise the minimum monthly pension from Rs10,000 to Rs11,500 as its income had surged to Rs116 billion — up 40 per cent from the previous year.
Pensions for informal labourers
The cabinet also directed the formation of a cabinet committee regarding institutional reforms in the EOBI.
This committee will consider proposals for institutional reforms as well as provision of EOBI benefits to the employees of unorganised or informal labour sector such as domestic and agricultural workers.
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The prime minister also directed the formation of a high-level committee to propose reforms to enhance EOBI’s capacity and ensure better services for pensioners in the future.
Tax exemption on life-saving drugs
In a separate move aimed at reducing healthcare costs, the cabinet granted a five-year exemption on essential life-saving drugs, including those for cancer and heart diseases.
The decision is expected to provide relief to patients and help the local pharmaceutical industry improve research and production in line with international standards, the statement said.
These drugs will be available only in hospitals and related institutions and their open sale will be prohibited and prior approval from the licensing authority will be required for their import.
Additionally, the cabinet, on the recommendation of the Ministry of Maritime Affairs, also approved the initiation of necessary legal action over the draft of the Sea Carriage Shipping Documents Bill, 2025.
Performance audit of govt bodies
Addressing the cabinet meeting, the prime minister reiterated his government’s commitment to performance-based governance, announcing that each ministry’s performance would be reviewed every two months.
“Departments that deliver good results will be acknowledged, and where flaws are found, they will be addressed with necessary disciplinary action,” he warned.