Business Desk 
Jul 17, 2025
The federal cabinet, under the chairmanship of Prime Minister Shehbaz Sharif, has approved a 15% hike in pensions offered by the Employees’ Old-Age Benefits Institution (EOBI), effective from January 1, 2025.
Notably, the decision was based on the recommendation of the Ministry of Overseas Pakistanis and Human Resource Development, and this increase will be funded from the institution’s resources.
The prime minister directed the formation of a cabinet committee to introduce institutional reforms in EOBI.
Moreover, the committee will deliberate on proposals to extend old-age benefits to the informal labour sector, including domestic workers, agricultural labourers, and other marginalised employment categories that have been previously overlooked.
With these reforms, the government aims to ensure that workers in these neglected sectors receive their due rights.
On the economic front, the prime minister expressed satisfaction over the recent positive trends in macroeconomic indicators.
“This message I want to make loud and clear—it is all about delivery and service to the nation,” the prime minister stressed.
During the meeting, he praised Federal Minister for Planning Ahsan Iqbal for his ministry’s effective utilisation of development funds, highlighting that the development spending had reached over Rs1 trillion under the Public Sector Development Programme (PSDP).
