Islamabad           -        EOBI has clarified a news headlined ‘EOBI to further record loss of Rs18 billion annually’ which was published in The Nation on 24.02.2020.

The Institution clarifies the instant news item with strong rejection that it had sustained a loss of Rs9 billion during last financial year due to increase in pension from Rs5,250/- to Rs6,500/- by simply subtracting the total pay-outs to beneficiaries from total contribution collection during the financial, year 2018-19. On the contrary, it is clarified that during financial year 2018-14- had a surplus budget of Rs17.44 billion which was approved by the federal government. Regarding the breakup of above surplus budget, it is stated that during FY 2018-19, Institution’s annual investment income stood at Rs27.41 billion, Grant by federal government was Rs2.49 billion, other income Rs310 million while EOBI’s contribution collection was Rs20.75 billion making aggregate receipts to be Rs50.96 billion. Therefore, after subtracting Rs31.74 billion as annual pension payouts and Rs1.7 billion on account of administrative management expenses (total Rs33.52 billion), the Institution did not sustain any loss.

Further, during financial year 2019-20 the Institution’s expected investment income and total contribution collection for the year 2019-2020 works out to be Rs35.8 billion and Rs23 billion (total expected receipts Rs58.8 billion) respectively which could conveniently cater the total pay-outs of Rs43.9 billion inclusive of administrative and development expenditure. Hence Board of Trustees of EOBI, after thoroughly examining / analysing all the factors effecting viability of the scheme, has approved the increase in pension from Rs6,500/- to Rs8,500/- which will be sent to cabinet for approval and notification. It is also clarified that the proposed increase in EOBI pension will take effect from January 2020 rather than September 2018 as wrongly communicated in the instant news item.