Islamabad: In a significant move to support retired workers, the federal cabinet on Wednesday approved a 15% increase in pensions under the Employees’ Old-Age Benefits Institution (EOBI), effective from January 1, 2025. The hike, proposed by the Ministry of Overseas Pakistanis and Human Resource Development, will be financed through EOBI’s own resources. Alongside this decision, the cabinet also deliberated on broad institutional reforms, key economic indicators, legislative matters, and national disaster preparedness.
The cabinet meeting, chaired by Prime Minister Muhammad Shehbaz Sharif, also saw the formation of a cabinet committee tasked with reforming EOBI. The committee will examine measures to extend old-age benefits to informal labor sectors such as domestic workers, agricultural laborers, and other marginalized employment categories—sectors traditionally excluded from such protections.
In legislative matters, the cabinet gave the green light to initiate legal procedures for the Sea Carriage Shipping Documents Bill, 2025, on the recommendation of the Ministry of Maritime Affairs. In another crucial health-related decision, the cabinet approved a five-year extension on the exemption for importing anti-cancer, cardiac, and other life-saving drugs used exclusively in hospitals and licensed healthcare institutions. These drugs, deemed essential for saving lives, will remain restricted from open market sales and will require prior approval from the relevant licensing authority.
The cabinet also endorsed decisions made by the Cabinet Committee on Legislative Cases during meetings held on July 2 and 3, 2025.
Addressing the cabinet, Prime Minister Shehbaz Sharif lauded federal and provincial authorities, along with the administrations of Azad Jammu and Kashmir and Gilgit-Baltistan, for maintaining peace and order during Muharram. He expressed appreciation for law enforcement agencies and all stakeholders for their coordinated efforts.
Touching on disaster preparedness amid ongoing monsoon activity, the prime minister reviewed the efforts of the National Disaster Management Authority (NDMA) and Provincial Disaster Management Authorities (PDMAs). He expressed sorrow over recent loss of lives due to torrential rains, particularly the tragic incident in Swat, emphasizing the need for stronger preventive measures in the future.
On the economic front, the prime minister expressed satisfaction with recent improvements in macroeconomic indicators and reiterated the government’s commitment to performance-based governance. He announced that ministries would be evaluated every two months, with recognition given to those performing well and accountability ensured for underperformance.
The prime minister also praised Federal Minister for Planning Ahsan Iqbal for effective utilization of development funds, noting that the Public Sector Development Programme (PSDP) had crossed the milestone of Rs 1 trillion in spending.
“This message I want to make loud and clear—it is all about delivery and service to the nation,” Prime Minister Shehbaz asserted during the meeting.
