ISLAMABAD: The Ministry of Finance has approved a substantial increase in pensions for retired federal government employees, offering long-awaited financial relief. The decision was formalized through an official Office Memorandum.
According to the memorandum, for federal employees retiring on or after July 1, 2025, the baseline pension will include the net pension (gross pension minus the commuted portion) along with several previously granted ad-hoc reliefs. These include pension increases of 15% in 2011, 7.5% in 2015, 15% in 2022, 17.5% in 2023, and 15% in 2024.
Cumulatively, these increments represent a 70% rise in pension benefits, now to be reflected in the net pension of federal retirees.
Separately, the federal cabinet recently approved a 15% increase in Employees' Old-Age Benefits Institution (EOBI) pensions, effective January 1, 2025. This decision was made on the recommendation of the Ministry of Overseas Pakistanis and Human Resource Development and will be funded through EOBI’s own resources.
Chaired by Prime Minister Shehbaz Sharif, the cabinet also approved the formation of a committee to introduce structural reforms in EOBI. This body will consider extending pension coverage to informal sector workers, such as domestic staff, farm laborers, and other marginalized groups.
Additionally, the cabinet greenlit legal procedures for the draft Sea Carriage Shipping Documents Bill 2025, and extended the five-year exemption on the import of life-saving medicines, including anti-cancer and cardiac drugs, to ensure their continued availability in hospitals and healthcare facilities.
