EOBI Assures Traders of Resolving Issues: Establishing Help Desk for Better Support
Introduction: EOBI’s Commitment to Traders
The Employees Old-Age Benefits Institution (EOBI) has assured the business community, particularly traders, of addressing and resolving their ongoing issues related to EOBI contributions. Dr. Javed Shaikh, the acting Chairman of EOBI, made this promise during his visit to the SITE Association of Industry in Karachi. He highlighted EOBI’s plans to establish a help desk, aimed at providing easier access to solutions for businesses encountering problems with the EOBI system.
This article will delve into the steps EOBI is taking to ease the process for industrialists, provide detailed insights into the institution’s digitalization efforts, and clarify the changes being made to support the local business community. It will also explore the impact of rising utility costs and other economic challenges that affect industries, as discussed by the SITE Association of Industry.
EOBI’s Support and Actions: Setting Up a Help Desk
Help Desk for Resolving Issues
To streamline the communication and resolution of problems, EOBI will set up a dedicated help desk every Monday at the SITE Association of Industry. This initiative is designed to help members access immediate support for their EOBI-related queries. Dr. Shaikh reassured the industry representatives that this help desk would be fully operational, ensuring the swift handling of all grievances and concerns.
Inclusion of Business Representatives in EOBI’s Board of Directors
One of the key highlights of Dr. Shaikh’s announcement was his commitment to including representatives from the business community on the board of directors of EOBI when it is reconstituted. This inclusion aims to ensure that the needs of businessmen are properly represented at the decision-making level of the institution, fostering more transparency and understanding in the EOBI processes.
Digitalization of EOBI’s Services
EOBI System Now Digitalized
Dr. Shaikh mentioned that the EOBI system had undergone a complete digital transformation, making it easier for businesses to interact with the institution. Every registered unit is now provided with a unique user ID and password. This access allows businesses to directly input their employees’ details and generate contribution vouchers online. This move toward digitalization has been well-received as it greatly simplifies the process for businesses, providing a faster and more efficient way to comply with the requirements.
Audit Process Simplification
A major concern for many businesses has been the audit process under the EOBI system. Dr. Shaikh explained that only 4% of all registered units across Pakistan are audited by the EOBI department. Furthermore, relaxation has been provided in the audit requirements, with the department announcing that the upcoming audit will cover the last two years instead of a full annual review. This move is aimed at reducing the compliance burden on businesses and providing them with greater flexibility.
Government Departments and EOBI
Dr. Shaikh clarified that government departments are not included within the purview of the EOBI system. This distinction is important for businesses to understand their obligations and avoid confusion about their responsibilities.
Issues of Fixed EOBI Contribution and Gratuity-Paying Employers
Dr. Shaikh acknowledged the concerns of employers regarding the fixed EOBI contributions. He suggested that businesses approach the federal government for relaxation regarding the fixed contributions, especially for employers who pay gratuities to their employees. This approach aims to provide some financial relief to businesses struggling with high contributions.
EOBI’s Financial Health and Contributions
EOBI Fund’s Current Position
The EOBI fund stands at a robust Rs532 billion, an amount that has been invested in various schemes to ensure its growth. Dr. Shaikh expressed confidence that the EOBI’s financial position is stable and that it will continue to meet its obligations, including the payment of pensions to registered workers.
Monthly Pension Payments
Currently, EOBI is disbursing a monthly pension of Rs5 billion to eligible registered workers. This ensures that the institution’s beneficiaries are well-supported, even as businesses continue to navigate the challenges posed by rising costs and economic pressures.
Recent Improvements in EOBI Collections
Dr. Shaikh highlighted that the collection of EOBI contributions has significantly improved in recent months, showing that businesses are increasingly complying with the contribution requirements. This increase in compliance is an encouraging sign for the institution’s sustainability and growth.
Coordination with the SITE Association
In a bid to improve communication and foster better relationships with the business community, Dr. Shaikh directed the regional head of EOBI to reach out to the SITE Association before issuing any notice under Section 81, a provision related to non-compliance. This proactive approach reflects EOBI’s commitment to working closely with industry bodies and resolving issues before they escalate.
Challenges Faced by Karachi’s Industrialists
High Utility Costs in Karachi
During the visit, SITE Association of Industry President Ahmed Azeem Alvi brought up the issue of soaring utility costs in Karachi. Despite the city’s industries paying the highest electricity rates in Pakistan, many businesses are struggling to keep their operations running efficiently. The lack of proper infrastructure and high costs of utilities are pressing challenges for industrialists in the city.
Decline in Industrial Output Amidst Rising Costs
Patron-in-Chief Zubair Motiwala expressed concerns over the decline in industrial output. He explained that while the export of agro-based products had increased, the industrial output had seen a decrease. This decline is partly due to the skyrocketing costs of utilities, which have made it increasingly difficult for industries to remain profitable.
Rising Cost of Doing Business
Zubair Motiwala further emphasized that the cost of doing business in Karachi has increased by a staggering 137%. With the highest-ever rates for utilities, it has become unsustainable for many industries to operate at a profit. The industry leaders stressed the need for measures to reduce the cost of doing business in the city, which is a critical factor for ensuring the long-term success and competitiveness of Karachi’s industrial sector.
Conclusion: Moving Forward with Cooperation
EOBI’s efforts to streamline its services, support businesses, and ensure greater inclusion of business representatives on its board are commendable steps toward fostering a better relationship with the business community. By addressing issues like audit relaxation, digitalization of services, and the inclusion of industry representatives, EOBI is making significant strides in easing the burdens faced by the business sector.
However, the challenges posed by high utility costs and the rising cost of doing business cannot be ignored. It is essential for all stakeholders, including government departments, to work collaboratively in finding solutions that will allow industries to thrive in Karachi and beyond.
FAQs
1. What is the role of EOBI in Pakistan’s business community?
EOBI is responsible for providing old-age benefits to registered workers, including pension payments. It ensures compliance with contribution requirements from businesses and facilitates support through digital services and help desks.
2. How does the new digital system benefit businesses?
The digitalization of the EOBI system allows businesses to easily manage employee details, generate contribution vouchers, and reduce paperwork, making it more efficient and convenient for employers.
3. What changes have been made to the EOBI audit process?
EOBI now audits only 4% of registered units, and there has been relaxation in the audit process. The next audit will cover two years instead of being done annually.
4. How can businesses get help with EOBI-related issues?
Businesses can now visit the help desk set up every Monday at the SITE Association of Industry to get assistance with their EOBI issues.
5. What are the challenges faced by Karachi’s industrialists?
Karachi’s industrialists are facing challenges like high utility costs, a lack of infrastructure, and rising business costs, making it difficult for many industries to remain profitable.
