LAHORE: The Employees’ Old-Age Benefits Institution (EOBI), a key pillar of social security in Pakistan, is reportedly struggling to effectively provide pensions to its beneficiaries, raising concerns about governance, accountability, and service delivery, sources told Business Recorder.
Established to deliver old-age pensions, survivor benefits for widows, and invalidity support to private-sector workers, the EOBI is funded through contributions from employers and employees and was envisioned as a safety net to ensure dignity after retirement. For hundreds of thousands of elderly citizens and widows, it remains their primary, and often only, source of livelihood. However, observers say the reliability of this safety net is increasingly under strain.
A major concern highlighted by experts is the absence of stable leadership within the institution. Instead of appointing a permanent chairman through a transparent and merit-based process, the government has continued to rely on temporary arrangements. The current chairman has been appointed for a period of three months, marking the second such short-term extension. Experts warn that an institution managing billions of rupees requires consistent leadership, as interim setups can weaken accountability, delay reforms, and create policy uncertainty.
Further concerns have emerged from recurring audit observations suggesting alleged collusion between certain officials and employers. Reports indicate under-reporting of employees, manipulation of contribution records, and other financial irregularities that may have caused significant losses. Analysts note that when enforcement officers fail to independently verify employer data or allegedly facilitate adjustments, the burden ultimately falls on workers and pensioners who depend on the system.
The impact of these issues is evident on the ground, as pensioners continue to receive modest payments that struggle to keep pace with rising living costs. Widows frequently face delays in the approval of survivor pensions, while many elderly citizens are compelled to make repeated visits to EOBI offices to resolve documentation issues despite their age and frailty.
During a survey, pensioners told this reporter that the challenges facing the EOBI are not merely financial but stem from governance weaknesses and declining public trust.
Saeed Ahmed, an affected pensioner, said he had been receiving pension for the past year when the payments were abruptly stopped without prior notice. He said that when he approached the EOBI office to seek clarification, officials informed him that the audit department had raised an objection to the release of his pension.
“I am still confused about why my pension was stopped when it had already been approved and released by the EOBI,” he said, adding that despite repeated visits, he was not informed of the exact reason behind the suspension of his payments.
Pensioners stressed that without permanent leadership, strict accountability, transparent auditing, and effective recovery from defaulting employers, the institution’s credibility may continue to deteriorate. They emphasized that strengthening the EOBI is not only an administrative necessity but also a moral obligation, as a society is ultimately judged by how it treats its most vulnerable citizens.
Copyright Business Recorder, 2026
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