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In a significant session held on July 16, 2025, at the Prime Minister’s House, Islamabad. The Federal Cabinet, chaired by Prime Minister Muhammad Shehbaz Sharif, approved several major initiatives. These included legal reforms in maritime affairs, a substantial pension increase for retired workers, and renewed exemptions for critical medicine imports. The meeting focused on strengthening institutions and addressing the needs of overlooked labor sectors.
The Cabinet approved legal proceedings for the Sea Carriage Shipping Documents Bill, 2025, on the recommendation of the Ministry of Maritime Affairs.
A 15% increase in the Employees’ Old-Age Benefits Institution (EOBI) pension was also approved. This raise, effective January 1, 2025, will be financed through EOBI’s resources. The Prime Minister ordered the formation of a committee to reform EOBI. The committee will examine institutional improvements and discuss expanding old-age benefits to unorganized labor sectors. These include domestic workers, agricultural laborers, and others historically excluded from such schemes.
The Cabinet also approved a five-year extension on tax exemptions for the import of life-saving medicines. These include drugs for cancer and cardiovascular conditions, based on recommendations from the Ministry of National Health Services. The exemptions apply only to hospital and institutional use. These medicines cannot be sold openly, and importers must seek approval from the licensing authority.
Lastly, the Cabinet ratified the decisions made during the meetings of the Cabinet Committee on Legislative Cases held on July 2 and July 3, 2025.
