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EOBI must resolve contribution issues and stop harassing industries over old dues: KATI

The Acting Chairman of the Employees’ Old-Age Benefits Institution (EOBI), Javed A. Sheikh, has announced a significant development for industries in the Korangi Industrial Zone. Speaking at a luncheon hosted by the Korangi Association of Trade and Industry (KATI), he stated that unregistered industries recommended by KATI will receive immediate certification without being required to clear old dues. Sheikh also assured attendees that the EOBI help desk in KATI would be restored, emphasizing the importance of collaboration in resolving outstanding issues. He welcomed the proposal to develop a comprehensive plan for addressing dues and payments through consultation.

During the event, KATI President Junaid Naqi, Deputy Patron-in-Chief Zubair Chhaya, CEO of KITE Limited Zahid Saeed, Senior Vice President Ijaz Ahmed Sheikh, Vice President Tariq Hussain, former Chairman and Presidents Johar Qandhari, SM Yahya, Gulzar Feroze, Ehteshamuddin, Saleem-uz-Zaman, President of SITE Association Ahmed Azeem Alvi, EOBI Director Abrez Muzaffar, Regional Head Korangi Ali Anwar Jamali and others were also present at the ceremony.

Sheikh praised KATI for its role as Pakistan’s largest contributor to EOBI. He acknowledged the long-standing relationship between EOBI and KATI and assured attendees that no action, including the issuance of notices or attachments, would be initiated against industries in the Korangi Industrial Zone without prior consultation with KATI. Sheikh underlined the critical role of EOBI in providing pensions to retired employees and highlighted that the organization disburses over PKR 5 billion in pensions every month. This fund, which has now grown to PKR 524 billion, is generated entirely through contributions from industries and organizations without any government grants.

Sheikh emphasized EOBI’s commitment to supporting employees, particularly in light of rising inflation, and expressed the institution’s intention to increase pension amounts to ensure better financial stability for retired workers. He also addressed concerns about the behavior of EOBI field officers, assuring that complaints of mistreatment would not be tolerated. Sheikh urged organizations to report any such incidents directly to EOBI for immediate resolution.

Additionally, Sheikh revealed that EOBI is testing a new digital portal designed to enhance transparency and efficiency. This portal will allow one-click access to detailed information about employees, registered offices, and contributions, making it easier for industries to stay informed and comply with regulations. The software is expected to be launched soon. Sheikh also noted that the issue of separate registrations for offices in different locations, a recurring problem for businesses, is being resolved as part of EOBI’s broader reforms.

KATI President Junaid Naqi highlighted several pressing issues faced by industries. He pointed out that EOBI often registers different offices of the same organization separately, which creates unnecessary complications for businesses. This issue is particularly burdensome for small and medium enterprises (SMEs), which form a significant portion of the industrial sector but often lack resources to establish HR and compliance departments. Naqi also criticized EOBI for issuing notices demanding payment of old dues, some dating back as far as 2006, even though regulations only permit audits for the past two years.

Naqi stressed the need for stronger coordination between EOBI and KATI to resolve these issues amicably, as was done in the past. He emphasized the importance of formulating a balanced policy that considers the interests of EOBI, industries, and employees, ensuring that none of the stakeholders face undue hardship. He noted that the ongoing economic crisis has already placed immense pressure on the industrial sector, and any additional burdens could exacerbate the situation.

Deputy Patron-in-Chief Zubair Chhaya expressed his appreciation for Sheikh’s understanding of EOBI operations, noting that he is among the few officials who have worked in every department of the organization. Chhaya highlighted the severe impact of inflation on workers, making it difficult for them to survive even on the government-mandated minimum wage. While industrialists strive to pay reasonable salaries, the economic crisis limits their ability to provide substantial financial support to employees. In this context, Chhaya described EOBI as a lifeline for employees.

However, Chhaya criticized EOBI field officers for focusing their efforts on compliant industries rather than targeting unregistered ones that evade contributions altogether. He noted that this practice creates unnecessary conflicts and leads to legal complications for industries already fulfilling their obligations. Chhaya called for a shift in focus, urging EOBI to target unregistered businesses while providing support and incentives to compliant sectors, particularly SMEs.

Zahid Saeed, CEO of KITE Limited, underscored KATI’s significant contribution to EOBI, stating that it has been the largest contributor to the organization for the past seven years. He lamented the discontinuation of the practice of having an EOBI focal person in KATI, which had previously helped address industry issues efficiently. Saeed urged EOBI to reinstate this arrangement to facilitate smoother communication and problem-solving.

Saeed also highlighted the challenges industries face due to the economic crisis, suggesting that EOBI provide flexibility to businesses in clearing outstanding dues as the economy begins to recover. He proposed that KATI be consulted before EOBI takes any action against industries to ensure fair and effective outcomes. Saeed also called for legislative measures to prevent EOBI from registering the same industry multiple times, a practice that has created unnecessary complications for businesses.

Former KATI President Masood Naqi also addressed the gathering, echoing the need for stronger collaboration between EOBI and KATI.

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