ISLAMABAD: Headed by the State Bank of Pakistan Deputy Governor, a Task Force was constituted for administrative and financial restructuring of the Employees Old Age Benefit Institution (EOBI).
The decision was made at a meeting of the committee formed by the Prime Minister under the chair of Finance Minister Ishaq Dar to resolve the issues being faced by the institution.
The EOBI Chairman briefed the committee members and apprised them of the mechanism of funds disbursed to pensioners in various areas across the country. He highlighted the issues faced by the institution, topped by dearth of financial resources and complications arising in post-18th amendment scenario. The Chairman emphasised that the institution needed special financial grant from the federal government to meet its obligations.
Finance Minister Ishaq Dar said due to scarcity of funds it was difficult for the federal government to allow any budgetary allocation to EOBI. He emphasised that EOBI should focus on generating funds from its own resources. He said the committee would consider various options to help out EOBI. The committee would also evaluate the status of EOBI in the light of devolution process initiated after the 18th amendment.
The committee after thorough discussion on the issues faced by EOBI decided to form a Task Force, headed by SBP Deputy Governor which would formulate suggestions to the committee in due course for administrative and financial revamping of the institution.
It is to be noted that the EOBI Act was enforced with effect from April 1, 1976, to achieve the objective of Article 38 (C) of the Constitution, by providing for compulsory social insurance. It extends benefits to insured persons or their survivors in terms of Old-Age Pension, Survivor’s Pension, Invalidity Pension and Old-Age Grant.
Special Assistant to Prime Minister Khawaja Zaheer Ahmed, Attorney General of Pakistan Salman Aslam Butt, Finance Secretary Dr Waqar Masood, Ministry of Overseas Pakistanis and HRD Secretary Rana Asad Amin, Finance Division Advisor Saeed Ahmed, State Bank Deputy Governor Sualeh Farouqui, and the EOBI Chairman attended the meeting.
In June 2013, the government announced that it would increase pensions of retirees insured by EOBI from Rs3,600 to Rs5,000 per month. In June 2014, the government once again announced that the pensions would be increased, this time to Rs6,000 per month. However, at no point over the previous 18 months did it occur to the government to assess the ability of EOBI to actually pay out higher pensions. EOBI has been unable to increase pensions from Rs3,600 a month, a level last set in July 2012.
