EOBI had provided details with the budget proposal for the year 2018-19 and the revised budget for the year 2017-18 was again placed before the EOBI Board of Trustees in its meeting on April 3, 2019. PHOTO: FILE
ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) government has approved a 384% increase in the budget of Employees’ Old Age Benefits Institution (EOBI) to invest in the real estate sector. The move comes despite the organisation’s past record of involvement in a multi-billion rupee land scam.
The Ministry of Overseas Pakistanis and Human Resource Development budget proposal for EOBI for the year 2018-19 and a revised budget for the year 2017-18 was earlier placed before the Economic Coordination Committee (ECC). It was directed to resubmit the budget proposal to the ECC along with details, which include justification for allocation of more than double the amount for human resource expenses in the budget estimates for 2018-19 compared to revised budget for 2017-18.
EOBI increases old-age pension by 20%
The economic decision-making body had also sought a rationale for the allocation of huge amounts in the budget estimates for 2018-19 for the hiring of human resources when only three months were left before the closing of the financial year. It was also directed to submit details of its investments in the real estate sector.
According to a report submitted to the ECC, EOBI said that it had invested Rs75.85 million in fiscal year 2017-18. It also demanded approval of Rs512.89 million in investments in the real estate sector during the current financial year.
EOBI has previously been allowed to make controversial investments in the real estate sector. In 2013, the Federal Investigation Agency (FIA) had declared that properties purchased by the EOBI were bought in a non-transparent manner, causing huge losses to the state-owned institution. The sellers of six properties had voluntarily agreed to return the money - Rs7.087 billion - to EOBI, and have submitted their offers on stamp papers in this regard. These properties were purchased on highly exorbitant rates as compared to the market value, without following proper rules and procedures.
EOBI had provided details with the budget proposal for the year 2018-19 and the revised budget for the year 2017-18 was again placed before the EOBI Board of Trustees in its emergent meeting on April 3, 2019.
It considered the concerns of the ECC and approved a revised budget which includes a Rs1.377-billion reduction in management expenses. EOBI collected Rs47.419 billion during 2017-18 and its expenditures stood at Rs27.9 billion. Total management expenses stood at Rs1.61 billion. It spent Rs75.85 million on investments in real estate. Benefit payment expenditures amounted to Rs26.1 billion. During the ongoing financial year, total receipts were estimated at Rs51.22 billion, Rs34.6 billion in benefit payments, and Rs1.857 billion in management expenses. Total expenditures were estimated at Rs37.5 billion, with an estimated Rs559.89 million in real estate investments.
Published in The Express Tribune, May 21st, 2019.
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