The federal cabinet, chaired by Prime Minister Muhammad Shehbaz Sharif, approved a 15% increase in pensions under the Employees’ Old-Age Benefits Institution (EOBI), effective from January 1, 2025, and extended a five-year duty exemption for importing life-saving drugs for cancer, heart diseases, and critical care.

According to a statement from the Prime Minister’s Office Media Wing, the EOBI pension hike is to be funded from the institution’s own resources and will benefit millions of retirees. Prime Minister Sharif directed the formation of a cabinet committee to implement institutional reforms in EOBI, focusing on extending old-age benefits to workers in the unorganized sector, including domestic and agricultural employees, who have long been overlooked.

Following on the recommendation of the Ministry of National Health, the cabinet also approved a five-year extension of duty exemptions on the import of critical medications used in hospitals for treating cancer, cardiovascular diseases, and other life-threatening conditions. These drugs, vital for patient survival, will be available only in hospitals and designated health institutions, with open market sales prohibited. Imports will require prior approval from a licensing authority to ensure regulated distribution.

Additionally, the cabinet greenlit the initiation of legal proceedings for the Carriage Shipping Documents Bill 2025, as recommended by the Ministry of Maritime Affairs, to streamline shipping regulations. The cabinet also ratified decisions from the Cabinet Committee on Legislative Cases held on July 2 and 3, 2025.