Should Federal Government Devolve EOBI? - October 3, 2011

While the larger provinces of Punjab and Sindh are demanding for devolution of EOBI to provinces under the 18th Constitutional Amendment, the smaller provinces of Khyber Pakhtunkhwa(KPK) and Baluchistan are opposing the move. The Employees Old Age Benefits Institution (EOBI) is currently working under the newly formed Ministry of Human Resource Development.

Critics argue that devolution of EOBI won’t serve the workers’ interests as smaller provinces, with smaller units and most of units going into loss, would be adversely affected with this unequal distribution of assets. EOBI is reported to have PKR 50-60 billion of assets. It is also argued that most of the workers from KPK and Baluchistan are working in Punjab and Sindh and with devolution; these workers’ shares will go to the provinces where they are working instead of their home provinces. It was informed that total contributions from the province of KPK are less than the contribution from Faisalabad. Same is the case for workers’ share in EOBI funds.

Source: Published in The Dawn, October 03, 2011

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