LAHORE: The Muttahida Labour Federation Punjab (MLFP) has called upon the federal government to include the reversal of the Employees Old-Age Benefits Institution (EOBI) to a federal entity through the upcoming 27th Amendment.

The demand aims at resolving a 15-year-long administrative and constitutional stalemate that has plagued the pension institution, creating confusion over its governance and jeopardising the welfare of retired workers.

The crisis began in 2010 when the EOBI, historically a federal institution, was devolved to the provinces, following the 18th Amendment. However, the federal cabinet later issued a notification to reclaim the institution on administrative grounds, creating a contradictory situation where the EOBI turned constitutionally a provincial subject but administratively a federal one.

“This confusion has paralysed the institution,” said Hanif Ramay, general secretary of the MLFP. “The provinces never gained full authority to run EOBI, yet its implementation is limited, leaving workers in a lurch.”

The legal battle over EOBI’s status has been ongoing since 2013, with retired employees filing a petition in the Supreme Court of Pakistan, which remained under hearing until recently.

The federation highlighted several critical issues stemming from this ambiguity. It pointed to the illegal continuation of the EOBI’s board of trustees (BOT), which was originally constituted in 2013 for a two-year term but remained operational beyond its mandate. Furthermore, the MLFP condemned the federal government’s failure to fulfill its financial obligations. “The federal government had accepted to give matching grants but has stopped providing this contribution since 1995. If the government cannot provide for workers’ pensions, it should leave EOBI and make it an independent institution run jointly by representatives of workers and owners,” Ramay said.

Published in Dawn, November 9th, 2025