On Wednesday, the federal cabinet approved a 15% increase in pensions provided by the Employees’ Old-Age Benefits Institution (EOBI), effective from January 1, 2025. This decision was made on the recommendation of the Ministry of Overseas Pakistanis and Human Resource Development, and the increase will be funded from the institution’s own resources.
The meeting, chaired by Prime Minister Muhammad Shehbaz Sharif, also led to the formation of a cabinet committee tasked with introducing institutional reforms within the EOBI. This committee will consider proposals to extend old-age benefits to the informal labour sector, including domestic workers, agricultural labourers, and other marginalised employment groups that have previously been overlooked. The objective of these reforms is to ensure that workers in these neglected sectors receive their rightful entitlements.
Additionally, the cabinet approved the initiation of necessary legal procedures concerning the draft of the Sea Carriage Shipping Documents Bill, 2025, following a recommendation from the Ministry of Maritime Affairs.
On the recommendation of the Ministry of National Health Services, the cabinet granted a five-year extension for the exemption on the import of anti-cancer, cardiac, and life-saving drugs used in hospitals and other related healthcare institutions. These medicines are essential for saving lives, and the exemption is intended to ensure their timely availability. Importation of these drugs will only be permitted for hospitals and authorised institutions, with sales in the open market banned. Prior approval from the relevant licensing authority will be required for importing these medications.
The federal cabinet also endorsed the decisions made during the meetings of the Cabinet Committee on Legislative Cases held on July 2 and July 3, 2025.
While addressing the cabinet, the Prime Minister commended the efforts of all provincial governments, the federal administration, and the authorities in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) for making arrangements during Muharram. He expressed gratitude to law enforcement agencies and other stakeholders for maintaining law and order during the religious observances.
The Prime Minister also discussed disaster preparedness in light of the ongoing monsoon season. He shared that he had chaired a high-level meeting with the National Disaster Management Authority (NDMA) and Provincial Disaster Management Authorities (PDMAs) to ensure effective arrangements. He praised the NDMA for its efforts in preparing to cope with the heavy rains experienced in various parts of the country.
Concerning the tragic loss of lives due to heavy rainfall, particularly the incident in Swat, he expressed sorrow and emphasised the importance of learning from such events to prevent similar tragedies in the future.
On the economic front, Prime Minister Shehbaz expressed satisfaction with the recent positive trends in macroeconomic indicators. He reiterated his government’s commitment to performance and service delivery, announcing that the performance of ministries would be evaluated every two months. “This message I want to make loud and clear—it is all about delivery and service to the nation,” the Prime Minister emphasised. He noted that ministries that perform well will be acknowledged, while those that do not will be held accountable and required to explain their shortcomings.
During the meeting, he also praised Federal Minister for Planning Ahsan Iqbal for the effective utilisation of development funds, highlighting that development spending had surpassed Rs 1 trillion under the Public Sector Development Programme (PSDP).
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