ISLAMABAD, June 17: The government has asked the Employees’ Old-Age Benefits Institution (EOBI) to invest its revenue in profitable concerns to avoid depletion of its funds.

According to government documents, investments are a necessity because it will accrue more money for the welfare institution. Apart from this, such finances coming from investments will be a permanent source of income, in addition to theregular monthly contributions made on behalf of employers and employees every month.

But in case the EOBI funds are left only to contributions and benefits, revenue of the welfare organisation would start depleting by 2022 and totally exhaust by 2029, warned the official papers.

In such a situation, any increase in pension benefits of workers would also put extra strain on its viability.

EOBI Chairman Zafar Iqbal Gondal said that increase in old-age benefits would be made in accordance with the rise in the cost of living to mitigate financial woes of the poor retired workers.

He said that the EOBI was a welfare institution and it would do all to provide relief to its pensioners.

But he also admitted that too much increase in old-age benefits without a similar increase in contributions from employers, or a matching grant from the government, would create serious complications for the welfare institution.

He said the EOBI had already made a double enhancement in pensions during the past few years. Previously, it paid only Rs1,500 per month but after I took over the organisation, workers’ benefits have reached Rs3,500 per month, he added.

Mr Gondal said the revenue accruing from contributions was being invested in lucrative business to offset its negative fallouts and pre-empt depletion or exhaustion of funds.