KARACHI, Feb 21: The Employees Old-Age Benefits Institution (EOBI) made a fabulous growth of over 83 per cent in equity income on realizing Rs851.55 million during the first half (July-December) of the fiscal year 2003-04 as compared to Rs141.41 million during the same period last year, officials said on Saturday.

The Institution for the last two years had been operating in the capital market at a full-scale and made an incredible and outstanding achievements. Increase in income through investment in equities during the July-Dec period was Rs710.14 million or 83.39 per cent over the corresponding period last year.

It is equally remarkable that the EOBI during the period under review enhanced its overall income by 38.65 per cent to Rs6.04 billion, as against Rs4.36 billion achieved or earned during the corresponding period last year.

Consequently, the size of total investment fund of the EOBI swelled to Rs74.335 billion as compared to Rs66.884 billion recorded on June 30, 2003, thereby showing an increase of 11.14 per cent. About two years back, the Institution's fund size was Rs45 billion only.

There is a strategic turnaround in the entire operational and financial activities of the Institution, which are visible and are being substantiated by the financial results of the last two years.

Total contribution collected by the EOBI during July-Dec 2003 was Rs1,297.05 million, as against Rs977.78 million from July to December 2002, showing an increase of Rs319.27 million or 33 per cent.

EOBI chairman Mohammad Shafi Malik told Dawn: "It has been our endeavour that under Article 38C of the Constitution every employee whether the government or the private sector be provided with social security. Therefore, it has been one of our major challenges for the last two years."

Among other challenges, he said, the EOBI as an institution had been run under typical government culture, which not only retarded growth and badly damaged its image, but also eroded its financial strength that was against the interest of pensioners.

Beside image-building measures, Mr Malik said, different operational steps were also taken to evolve strategy that included employers data base introduction of self-assessment scheme, rationalizing of EOBI's managerial expenses and training of employees.

"For enlarging fund size and securing pensioners' interest, investment reforms were introduced by inducing qualified fund manager. On diversification of investments to stocks, services of brokerage houses were taken to ensure profitable operations and only those portfolios were purchased that have healthy financial position and good record of dividend," he added.

As a result, Mr Malik said, the recent fund study had extended the depletion period of the fund by 10 year - from the year 2015 to 2024. "This was only possible on curtailing hidden costs and improving fund income."

There was also an increase in disbursement of pension during this period to Rs841.10 million against Rs777.24 million in the corresponding period last year. This show an increase of Rs63.86 million or 8.22 per cent.