The total investment portfolio of Employee Old Age Benefit Institution (EOBI) in the year 2017-2018 was Rs. 33.1579 billion, which was increased to Rs. 34.8465 billion in the year 2018-19 and as of 30 June 2020 the total portfolio reached Rs. 36.2703 billion.
This was revealed before the Senate Standing Committee on Overseas Pakistanis and Human Resource Development in its meeting, which discussed issues related to 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.
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 a 30 percent increase in existing formula pension w.e.f January 2020 The summary for an increase in pension was moved by the Ministry of Overseas Pakistanis and Human Resource Development under Section 2A of EOBI Act 1976.
While reviewing cases of corruption and embezzlement at EOBI, the committee was informed that the 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 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 Supreme Court vide Order dated 15 November 2018 decided the mark up paid on the 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 the total investment portfolio of EOBI n the year 2017-2018 was Rs. 33.1579 billion which was increased to Rs. 34.8465 billion in the year 2018-19 and as of 30 June 2020 total portfolio reached Rs. 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 the contribution share of employer and employees, the committee was informed that for the year 2019-20 total contribution share of the employer was Rs. 17,633 million while employees was Rs. 3527 million. The registration of non-formal sectors is being considered as well.