The Senate Standing Committee on Overseas Pakistanis and Human Resource Development in its meeting on Wednesday, discussed in detail issues related to Employees Old Age Benefit Institution (EOBI).
Chaired by Senator Hilal-ur-Rehman, the meeting was attended by Senator Nighat Mirza, Senator Samina Saeed, Senator Shaheen Khalid Butt and senior officers from the Ministry for Overseas Pakistanis and Human Resource Development along with all concerned.
The Committee, considered a report on the Resolution moved by Senator Ghous Muhammad Khan Niazi in the Senate on 13th July, 2020 regarding “Reduction in pension being granted to retired and old aged workers by EOBI from 8500 to 6500. The Committee was informed that the present government has increased EOBI pension from PKR 5250 to PKR 8500 per month. This is a 62 percent raise in two years which is unprecedented. The present government has also announced an increase in minimum pension of EOBI 6500 to 8500 and 30 percent increase in existing formula pension w.e.f January, 2020 The summary for increase in pension was moved by the Ministry of Overseas Pakistanis and Human Resource Development under Section 2 A of EOBI Act 1976.
While reviewing cases of corruption and embezzlement at EOBI, the Committee was informed that the Honourable Supreme Court had initiated Suo Moto proceedings against 18 properties purchased by EOBI w.e.f from 01 July, 2013 and converted it into Constitutional Petition No.35 pf 2013. The Honourable Court decided the fate of two properties i.e. 54-Main Gulberg, Lahore and an Open Plot at Moza Shejpal, Lahore and allowed the Institution to retain both properties vide Order dated 07 June, 2017. For the remaining properties the Honourable Supreme Court of Pakistan vide Order dated 15 November, 2018 decided the Mark up paid on principal amount by the seller shall be Kibor rate +2. The Committee has summoned DG FIA in the next meeting to review the matter in greater detail.
Discussing details of total investments and assets of EOBI, the Committee was informed that total investment portfolio of EOBI n the year 2017-2018 was PKR 33.1579 Billion which was increased to PKR 34.8465 Billion in the year 2018-19 and as of 30 June, 2020 total portfolio reached PKR 36.2703 Billion. The Committee recommended that medical and health facilities must be provided to pensioners. It was revealed that EOBI is in the process of designing a plan for medical and health insurance for pensioners.
Regarding contribution share of employer and employees the Committee was informed that for the year 2019-20 total contribution share of employer was PKR 17,633 Million while employees was PKR 3527 Million. Registration of non-formal sectors is being considered as well.