Federal Cabinet Approves 15% Increase in EOBI Pensions, Extends Tax Exemption on Life-Saving Drugs

ISLAMABAD: The federal cabinet, under the chairmanship of Prime Minister Shehbaz Sharif, has approved a 15% increase in pensions for Employees’ Old-Age Benefits Institution (EOBI) pensioners. The raise will be effective from January 1, 2025, and will be funded entirely through EOBI’s internal resources.
According to a statement issued by the Prime Minister’s Office, the cabinet meeting was held at the Prime Minister House in Islamabad today. During the meeting, several key decisions were made, including the approval of the Sea Carriage Shipping Documents Bill 2025, upon the recommendation of the Ministry of Maritime Affairs.
In addition to the pension increase, the Prime Minister directed the formation of a special cabinet committee to undertake institutional reforms within EOBI. The committee will also evaluate proposals for extending old-age benefits to employees in the informal labor sector, such as domestic workers and agricultural laborers, who have historically been excluded from such social protections.
The cabinet also approved, on the recommendation of the Ministry of National Health Services, an extension of the existing five-year exemption on the import of life-saving medicines. These include drugs used to treat cancer, heart diseases, and other critical health conditions. The exemption is intended to ensure timely and uninterrupted availability of these essential medicines in hospitals and healthcare institutions.
However, the cabinet emphasized that these imported medicines will only be available in licensed hospitals and health facilities, with open market sales strictly prohibited. Importers will be required to obtain prior approval from the licensing authority.
Furthermore, the cabinet ratified the decisions made during the Cabinet Committee on Legislative Cases meetings held on July 2 and July 3, 2025.