# *Detailed SUMMARY of the article "Pension for all" by Naeem Sadiq, Published in Dawn on June 5th, 2025:* The article draws a parallel between the *abolition of slavery* in the *US in 1865* and *Pakistan*'s *modern-day slavery* through pension deprivation, arguing that while slavery was officially abolished, it mutated into subtler forms. *Pakistan* practices this by either not registering *95% of its workers* with the *Employees' Old-age Benefit Institution (EOBI)* or not depositing their *monthly pension contributions*. The author presents alarming statistics: *Pakistan* has approximately *75 million workers*, but only *11 million* are registered with *EOBI*. Of these registered workers, monthly *EOBI contributions* are deposited for only *3.28 million* or *4.4%* of the total workforce, meaning *71.7 million Pakistani workers* have been deprived of their rightful pension. An in-depth study reveals the *EOBI*'s institutional failures - the department couldn't produce notification of the *6% contribution amount* employers must deposit, with their website showing outdated *10-year-old monthly contribution* of *Rs780* while management verbally suggested *Rs2,220*. A study of *50 random samples* of proclaimed *EOBI registered workers* found not a single employee whose payments were correctly reflected on the *EOBI website*. The author contrasts this with *Uzbekistan*, where the entire workforce of *19.76 million workers* is registered in the *national pension scheme* with employers electronically contributing *12%* of gross salary as *'social tax'* directly to the tax department. The article proposes radical reforms: completely shut down the existing *EOBI*, repeal the *Employees' Old-Age Benefits Act 1976*, saving *Rs2.7 billion* in management expenses, recovering *96 government vehicles* and billions invested in buildings. It suggests introducing mandatory *6% social tax* on gross salary bills and *1% social tax* on taxable income, collected by *FBR* as part of routine *income tax*. Using *CNIC*, pensions could be linked to *Nadra records* and managed like *BISP*. The author argues that if a *high court judge* can receive pension equal to *70% of last salary*, workers' pension should be pegged to *70% of latest notified minimum wage*. The article concludes that *Pakistan* can become a reformed model state by providing *minimum legal wage* and *decent pension* to every citizen. # *Easy/Short SUMMARY*: *Pakistan*'s *EOBI system* deprives *71.7 million workers* (*95%*) of pensions through non-registration and non-payment of contributions. Only *3.28 million* out of *75 million workers* receive proper pension deposits. The author proposes shutting down *EOBI*, introducing *6% social tax* on employers and *1% on individuals*, collected by *FBR* and distributed via *Nadra* like *BISP*, ensuring *universal pension* for all citizens. # *SOLUTIONS of The Problem*: ## *1. Shut Down EOBI* Completely close the existing *EOBI* and repeal the *Employees' Old-Age Benefits Act 1976*. ## *2. Introduce Social Tax System* Implement mandatory *6% social tax* on gross salary bills of all employers and *1% on individuals*. ## *3. Centralize Collection via FBR* Transfer pension contribution collection to *FBR* as part of routine *income tax* process. ## *4. Link Pensions to Nadra* Use *CNIC* to link pensions to *Nadra records* for efficient distribution management. ## *5. Universal Coverage* Extend pension coverage to *unorganized workers* and *self-employed individuals*. ## *6. Adopt BISP Model* Manage pension distribution using *BISP*-like systems for all *Pakistani workers*. ## *7. Set Minimum Pension Standards* Peg workers' pension to *70% of latest notified minimum wage*. ## *8. Make Pensions Taxable* Declare pensions above *Rs50,000* as *taxable income* like other countries. ## *9. Electronic Payment System* Implement *electronic contribution* system eliminating manual processes and inspectors. ## *10. Learn from Best Practices* Adopt successful models like *Uzbekistan*'s *national pension scheme*. # *IMPORTANT Facts and Figures Given in the article*: - *Pakistan* has approximately *75 million workers*. - Only *11 million workers* are registered with *EOBI*. - Monthly contributions deposited for only *3.28 million* or *4.4%* of total workforce. - *71.7 million Pakistani workers* deprived of rightful pension. - *EOBI website* shows outdated *Rs780* monthly contribution (*10 years old*). - *EOBI management* verbally suggested *Rs2,220* contribution. - *50 random samples* showed no employee had correct payment records. - Shutting *EOBI* would save *Rs2.7 billion* in management expenses. - *96 government vehicles* currently used by *EOBI*. - *657 employees* currently work at *EOBI*. - *Uzbekistan* has *19.76 million workers* all registered in pension scheme. - *High court judges* receive pension equal to *70%* of last salary. # *IMPORTANT Facts and Figures out of the article*: - *Pakistan*'s formal sector employs only *15%* of total workforce (*World Bank*, 2024). - Average *Pakistani worker* retires with no pension savings (*ILO*, 2024). - *EOBI* covers less than *5%* of eligible workforce (*Social Protection Report*, 2024). - *Minimum wage* in *Pakistan* is *Rs32,000* per month (*Labour Ministry*, 2024). - *India* covers *500 million workers* under pension schemes (*EPFO*, 2024). - *Social security coverage* in *Pakistan* is *2.5%* vs global average of *45%* (*ILO*, 2024). # *MCQs from the Article*: ### 1. *What percentage of Pakistani workers are registered with EOBI?* A. 25% B. 15% *C. About 15% (11m out of 75m)* D. 50% ### 2. *How many Pakistani workers receive actual pension deposits?* A. 11 million *B. 3.28 million* C. 75 million D. 50 million ### 3. *Which country's pension system does the author praise?* A. India *B. Uzbekistan* C. China D. Bangladesh ### 4. *What social tax rate does the author propose for employers?* A. 12% *B. 6%* C. 10% D. 8% ### 5. *What percentage of high court judge's salary becomes their pension?* A. 50% *B. 70%* C. 60% D. 80% # *VOCABULARY*: 1. *Abolished* (ختم کیا گیا) – Officially ended or eliminated 2. *Mutated* (تبدیل ہوا) – Changed form or evolved 3. *Subtler* (باریک) – More refined or less obvious 4. *Practitioners* (پیروکار) – Those who practice or follow 5. *Magnitude* (وسعت) – Great size or extent 6. *Callousness* (بے حسی) – Cruel indifference or insensitivity 7. *Mandating* (لازمی قرار دینا) – Making something compulsory 8. *Inadequate* (ناکافی) – Insufficient or unsuitable 9. *Proclaimed* (اعلان شدہ) – Declared or announced 10. *Runaround* (چکر) – Evasive treatment or bureaucratic delays 11. *Disputes* (تنازعات) – Disagreements or conflicts 12. *Dysfunctional* (غیر فعال) – Not working properly 13. *Titanic* (بہت بڑا) – Enormous or massive 14. *Blunder* (غلطی) – Serious mistake or error 15. *Amends* (اصلاح) – Compensation or correction 16. *Repealing* (منسوخ کرنا) – Officially canceling a law 17. *De-link* (الگ کرنا) – Separate or disconnect 18. *Mandatory* (لازمی) – Required by law or compulsory 19. *Pegged* (مقرر کرنا) – Fixed or set at a certain level 20. *Penalised* (سزا دینا) – Punished or made to suffer 📢 *Attention Please!* We appreciate your commitment to acquiring knowledge through our summaries. Please be reminded not to remove the attribution label affixed to this article. It is crucial to acknowledge the source and the effort invested in creating this summary. We discourage any unauthorized distribution without proper credit. Thank you for your understanding and cooperation. 🔍 ⚡ *Explore More Summaries, Solutions, and Vocabulary Meanings* 💡 Join our WhatsApp Channel for timely and comprehensive summaries of the latest articles, along with well-crafted solutions and helpful vocabulary meanings. Click the link below to join now 🔗 [Dawn Article Summaries](https://cssmcqs.com/dawn-editorials-articles-summary-for-students-pdf-download/) *WhatsApp Channel Link*: [https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y](https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y) --- *dawn.com* *Pension for all* *Naeem Sadiq* *5–6 minutes* WHILE slavery was officially abolished across the US in 1865, it did not die out. Instead, it mutated, taking on subtler but still lethal forms. Pakistan, too, became one of the practitioners of what is referred to as 'modern-day slavery' by either not registering 95 per cent of its workers with the Employees' Old-age Benefit Institution (EOBI) or not depositing their regular monthly pension contribution. This is large-scale cruelty and incompetence. Here are a few basic facts to grasp the magnitude of this self-created chaos. Pakistan has a workforce of approximately 75 million workers. Only 11m of them are registered with the EOBI. Of the 11m registered workers, the monthly EOBI contribution is deposited only for 3.28m or 4.4pc of the total workforce (confirmed by the EOBI through a Right to Information request). Thus, 71.7m Pakistani workers have been deprived of their rightful pension and pushed towards a dependent and demeaning future. An in-depth study of the EOBI reveals earth-shattering insights into our collective callousness. We are guilty of mandating the task of managing the pensions of 75m precious workers to a legally, functionally and professionally inadequate organisation. The EOBI department could not even produce a notification of its existential task, ie, the value of the 6pc amount that must be deposited by the employers. The EOBI website still refers to a 10-year-old monthly contribution of Rs780, while the verbal response by the EOBI management suggested a contribution of Rs2,220. Fifty random samples of 'proclaimed' EOBI registered workers were chosen to verify the true status of payments made by their employers. There was not a single employee whose payments were completely or correctly reflected on the EOBI website. The department had no answer to explain how it will ever know the amount deposited against a specific employee. A study based on several retired workers revealed that it took many months, reams of photocopies, endless runaround and numerous three-way disputes to determine the true amount contributed against any employee. Millions of Pakistanis have been deprived of their rightful pension. Pakistan could learn from a developing country like Uzbekistan whose entire workforce of 19.76m workers is registered in the national pension scheme. There are no inspectors or institutions for collecting pension contributions. All employers electronically contribute 12pc of the employees' gross salary bill, as 'social tax' along with other taxes, directly to the tax department. The distribution of pensions is subsequently implemented by the finance ministry. Why has Pakistan allowed a known dysfunctional system to deprive 96pc of its workers of their legal right to pension? We have made a titanic blunder, and we must be willing to make amends by undertaking immediate, radical and forward-looking pension reforms. Start by completely shutting down the existing EOBI and repealing the Employees' Old-Age Benefits Act, 1976. This would immediately save about Rs2.7 billion of management expenses, recover 96 government vehicles, get back billions invested in buildings and plazas and relieve 657 employees currently engaged in further organisational decay. Declare that the state shall honour and provide for universal pension and social security for all citizens including unorganised workers and self-employed individuals. De-link the existing 'impossible-to-manage' process of employers making payments against a small number (usually 10pc) of their workforce. Introduce mandatory 6pc social tax on the gross salary bill of every em­­p­loyer — industrial, commercial or agricultural. Also introduce 1pc social tax on the taxable in­­come of every tax-paying individual. The social tax for organisations as well as individuals should be collected by FBR as an element of the routine yearly income tax. Using CNIC, pensions could be linked to Nadra records and managed on similar lines as BISP for distribution to all workers of Pakistan. Also, pension is a form of income and like most other countries (including India), must be declared as 'taxable income' for those receiving a pension of more than Rs50,000 per month. If a judge of the high court can be entitled to a pension that is 70pc of his last salary, why can the workers' pension not be pegged to 70pc of the latest notified minimum wage? Inability or inefficiency in collecting 6pc social tax from each employer ought to be the responsibility of the state for which workers cannot be penalised. Pakistan can become a reformed model state by simple acts of providing minimum legal wage and a decent pension to every citizen. Is that asking for too much? The writer is an industrial engineer and a volunteer social activist. [email protected] Published in Dawn, June 5th, 2025