Good news for Pension seekers: Federal Cabinet approves EOBI pension increment

In a significant session held on July 16, 2025, at the Prime Minister’s House in Islamabad, Prime Minister Muhammad Shehbaz Sharif chaired the Federal Cabinet meeting and approved several major initiatives. The Cabinet introduced legal reforms in maritime affairs, approved a substantial pension increase for retired workers, and renewed exemptions for critical medicine imports. The meeting aimed to strengthen institutions and address the needs of neglected labor sectors.

On the recommendation of the Ministry of Maritime Affairs, the Cabinet approved initiating legal proceedings for the Sea Carriage Shipping Documents Bill, 2025.

The Cabinet approved a 15% increase in the Employees’ Old-Age Benefits Institution (EOBI) pension, effective January 1, 2025. EOBI will finance the raise through its resources. Prime Minister Shehbaz Sharif directed the formation of a committee to reform EOBI. The committee will explore institutional improvements and consider expanding old-age benefits to unorganized labor sectors, including domestic workers, agricultural laborers, and others historically excluded from such schemes.

The Cabinet approved a five-year extension of tax exemptions on the import of life-saving medicines, including drugs for cancer and cardiovascular conditions, based on recommendations from the Ministry of National Health Services. These exemptions apply exclusively to hospital and institutional use. The Cabinet mandated that these medicines cannot be sold openly, and importers must obtain approval from the licensing authority.

Lastly, the Cabinet ratified the decisions the Cabinet Committee on Legislative Cases made during its meetings on July 2 and July 3, 2025.

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