Issues of Non-Contributing Gap & Management at

E.O.B.I: A Case of Largest Pension Fund of Pakistan

Maheen Nisar
Research Scholar
Karachi University Business School, University of Karachi, Pakistan

Abdul Wahab
Research Scholar
Karachi University Business School, University of Karachi, Pakistan

Dr. Danish Ahmed Siddiqui

Associate Professor
Karachi University Business School, University of Karachi, Pakistan
daanish79@hotmail.com

ABSTRACT
The nascent private pension system is faced with several problems, poor records, financial
mismanagement and inefficiency, low payouts. An over-centralized organizational
structure, in EOBI as well as rigid, often irrelevant, and unevenly enforced rules and
mismanagement, result in delays in responding to clients, due to employees & employers think
that there is no need to registration due to which collection is very low. There is also
inadequate cooperation between different, offices. Such problems create problems not only
for employees but also for employers and organizational effectiveness. In many private
enterprises, labour is hired on a contract basis and stays only for three to four months. With the
completion of the assignment, existing workers are laid off and new labour is hired for the next
order. This short period of work does not allow the labourers to become eligible for any type of
benefit as three months are usually taken as the probation period before a worker can be made
permanent.
Due to these unfair terms of hiring, social security and EOBI benefits are also evaded. Where
an enterprise hires 10 or more workers, it commonly starts portraying itself as several small
enterprises with different owners Since the inception privatization of industries, new owners of
privatized units have been insisting on laying off all labour and bringing newly hired workers on
their own terms., each having 8 or fewer workers. EOBI Institution experiences administrative
problems in record keeping and in identifying defaulters and enforcing payment. Because
employees don’t want to pay contribution, they don’t give importance pension after retirement.
There is also another problem that most laborers are not aware of all the labor laws and how
they can benefit from them. 80% don’t know about EOBI, to whom it provides benefits and when
it provides. Remaining 20% know there is a welfare scheme for Old Age benefits, but they don’t
want to register themselves because there are a lot of formalities and it takes time. Improvement
in registration record of employers, employees, contributions would help to make EOBI
progressive and actuarial Valuation to be made every three years.

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1. Introduction:
That Thursday, clouds spilled down from the sky and swamped the streets with a hot mist that
made the thermometers on the walls perspire. Halfway through the afternoon, the temperature
was already grazing the thirties as we set off towards E.O.B.I for our appointment with Mr.
Naveed Fayyaz, carrying the book under my arm and with beads of sweat on our foreheads. A
luxurious stone staircase led from a picturesque courtyard to of gloomy passageways and offices.
We glided up to the first floor, blessing the blades of a fan that swirled above the sleepy readers
melting like ice cubes over their books.

We were very nervous as we were sitting in front of a Regional Head/Director. This was our very
first experience in our lives. After a bit of introduction we directly started to tell them that we
have chosen E.O.B.I as our Final Year Project and we’ll need their assistance and insight
throughout our research. The problems we identified after a brief interview came under a specific
heading i.e.; “The Non Contributing Gap & Mismanagement at the organization”. This
comprised of a lot of issues that were currently going on in E.O.B.I.

We went through a lot of case studies, both national and international, and reports, some of
which were provided to us by the organization we are working on and some which we referred to
for our own understanding and to help us compare the situation with similar institutes in Pakistan
and outside. This is a brief case study in which we will suggest some mitigating factors to help
E.O.B.I and its associated people and systems.

The reason behind choosing this particular organization is that we had some affiliations with the
organization which would help us to look into the company processes more clearly and also we
believe if we can provide E.O.B.I with some practical solutions and somewhat their issues get
resolved, this would be a good way to “give something back” to the organization which has been
working towards the old age and retired demographics of our nation since 1976.

2. Statement of Problem:
The problem we came across regarding non-contributing gap covers a wide range of issues and
all of them are interconnected solving one will solve the other issues too as a whole.

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 When the laws change the distribution of funds between provinces and the federal
government. As E.O.B.I is a government institution so it was now bound to be divide into four
separate provincial offices and one running in federal. Organizations were confused where they
had to submit the funds according to the wage rate principal so due to 18th amendment a lot of
organizations went in litigations against E.O.B.I which increased the problems. For example, the
government of Sindh and the federal government came into direct conflict regarding the funds
they were receiving in particular for E.O.B.I.

Currently E.O.B.I is working with only 783 employees which is almost the 50 percent of
the required workforce needed to run E.O.B.I administration. For example, people in the auditing
department are not at their 100% state so that particular department is not working
efficientlyThis gap between the required and current personnel results in a big mismanagement
in E.O.B.I’s processes and systems. If E.O.B.I had been working with their 100 percent strength
with employees putting their full efforts, this will automatically improve their management.

E.O.B.I as an institution not only receives funds but it also earns from the insurances it
provides to the retired people. The problem is that the disbursements E.O.B.I is making each
month are increasing but their earnings are lesser, so there is a shortage of funds to handle the
monetary operations.

The government has increased the wage rate in the recent budget from Rs. 13000 to
15000. 5% of the minimum wage rate employer gives directly to E.O.B.I, i.e.; Rs 650 of 13000
and 1% is deducted from the employee’s salary i.e.; Rs. 130 of 13000. Some organizations
presently are only able to provide the 5% of 8000 instead of the earlier required Rs. 13000 so this
already created a huge discontinuity between the actual pensions and the funds collected by
E.O.B.I so a conflict arose that government’s increase to the rate of Rs. 15000 was neither
feasible nor applicable.

The pensions were also increased from Rs. 3000 to 6500 again the problem came that
there were lesser funds and more people receiving the pensions. One of the major challenges
faced by EOBI is low contribution to EOBI resulting in lower contribution compared with the
liabilities for the beneficiaries. It’scalculated that the present contributions and gains from
investment will not be enough to cover the pensions and administration expenditures by 2024.

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 According to their vision, “To be a viable, credible, progressive Institution devoted to
provision of Social Security to all persons in service of Pakistan”, E.O.B.I always works in the
best interest of their customers and the government with transparency, fairness and
professionalism in their matters. With full integrity, courtesy and teamwork they develop trust in
the minds of their customers. A system which is highly automated currently present in E.O.B.I
that provides challans on monthly basis through an online system that they call FA system serves
all the old aged efficiently so that they don’t have to wait for their monthly payments. This
particular system is not even in effect in private companies of our company. These shows how
eager E.O.B.I is to work for and provide services in the best of interests of its stakeholders. If the
abovementioned issues are solved, E.O.B.I will be highly trusted by people again.

3. Literature Review:
In this case study, we aim to discuss all the related causes resulting in these problems that
haveled to E.O.B.I not being viable, credible and progressive. We have used primary sources to
acquire data. All workers need to be provided old age security after a lifetime of security. The
existence pension system has been weak in the terms of coverage and benefits. E.O.B.I only
covers small segment of labor force in both public and private sector. Public sector pensions
have been lucrative related to wages but wages have been very low.

These pensions are not indexed according to the government pay scale after the
retirement so these are very inadequate. While the private pension system also faces financial
mismanagement and low payouts and E.O.B.I’s organizational structure is rigid, irrelevant and
leads to mismanagement as their response to their clients is very delayed since employers and
employees think that there is no need to register which leads to low contributions.

Learning from the experience of developed countries, population ageing has raised
concerns about the sustainability of public pension systems and is becoming increasingly
burdensome on the contributors as old age dependency rates are rising to high levels [OECD
(1998), Bongaarts (2004)].In addition, Asian Development Bank for its publication “Pakistan
Poverty Assessment Update” commissioned a study to conceptualize a social protection
framework for Pakistan. Bari et al (2005) prepared a background paper which covered the

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 analysis of existing provisions of social protection and identified gaps in current social protection
schemes.

Pasha et al (2010) concluded16 that “It appears that most of the schemes have weak
institutional structures, their funding is limited and uncertain, their targeting inefficient and their
coverage very small. They also inferred that “the combined program coverage of all the schemes
is low and highlights the likely limited impact of social safety nets in Pakistan.

Our first case refers to the distribution of public and private old age pensions that are the
central pillars in modern societal growth, and they lead to future sustainability of pension system.
Our second case refers to the reduction in the pension system which is creating concerns among
the employees to achieve financial security after their retirement. Our third case cases deals with
a PAYG system that is a single pension fund to collect contributions from the organizations
however this might lead to monopolization of the system and inadequate supply of funds.

4. Analysis:
INTRODUCTION OF THE EOBI PENSION SYSTEM

Pakistan has three types of pensions (Government, Military and EOBI). Pension management
funds also have been launched very recently.

• The constitution of the Islamic republic of Pakistan guarantees compulsory social insurance to all
citizens of Pakistan as envisaged under article 38-C which states as under;
• “The state shall provide for all persons employed in the service of Pakistan or otherwise,
social security by compulsory social insurance or other means”
• The state in line with above constitutional commitment legislated Employee's Old Age
Ordinance 1972 which could never be implemented.
• In 1976 the Employees Old Age Benefits Act 1976 was promulgated under which a national
organization in the name of Employees Old Age Benefits Institution (EOBI) started working.

COVERAGE

• EOB Act, 1976 was enforced with effect from July 1, 1976.

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• It covers all establishments having five or more employees irrespective of designation, pay/
wages. Hence everyone employed in a registered or register able establishment is eligible for
membership under the scheme
• The directors or their family members are not eligible to be covered under the EOB Act 1976.
• The Act does not cover the self employed persons.

CONTRIBUTION

• The EOBI covers all employees engaged by any commercial industrial organizations employing
five or more persons
• The present rate of minimum wage in Pakistan is Rs.14000 at national level However EOBI is
collecting contribution rate @ Rs. 13000 per month
• The employer is required to contribute @ of 5% of the minimum wage where as the employees
contribute @ of 1% of the minimum wage.
• However due to some legal implications, the contribution is being received on the ceiling of
rupees 8000-13000 being minimum wage since 2010.

BENEFITS, ELIGIBILITY AND RATE

Types of Benefits Old Age Pension

Survivor’s Pension
Invalidity Pension
Old Age Grant
Eligibility 15 years of Insurable Employment for OAP
3/5 years for Survivor’s pension
5 years for Invalidity Pension
Less than 15 years for Old Age Grant
Rate of Pension Rs.5250/ to Rs.10600/- per month

PENSION FUND

136.76 +.836 + 211.11 +100 - 141.06+14.500 = 293.146billionTotal

billion billion billion reserves
Contributions Investment Pension
revenue Payments

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 Resources
• Collection of Contribution: Rs.136,761.046 Million
• Contribution By Federal Govt.= Rs.835,700 Million
• Returns On Investments: Rs.211109 Million

Expenditures
• Pension Disbursement:Rs.141058.877 Million
• Administrative Expenses:Rs.14500 Million
Keeping in view the above, it clearly manifests that the Institution, as it exists today, has many
institutional weaknesses which can be classified into four segments, i.e. Operational, Legal,
Investment and Constitutional. The study was carried out within these four parameters:

1. Operational Weaknesses:

• Less registration of establishments

• Less registration of insured persons
• Absence of proper data
• Callous attitude of staff
• Absence of meaningful inspection of establishments
• Low quality of IT based infrastructure
• Posting of irrelevant officers in operational offices
• No pre induction and on job training
• Poor posting plan of field officers to different cities

2. Legal Weaknesses:

• Non compliance of and disparity between main law and rules/regulations made thereunder
• Increase in pension without considering findings of actuarial study
• Increase in pension without equitable increase in contribution or investment
• Low profile Board of Trustees
• Decisions of High Court regarding amendments in the law throughFinance Acts

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 3. Investment Weaknesses

• Loss to the fund through non-prudent financial decisions

• Low yield from investment portfolio resulting in mismatch with pension payouts
• Non availability of investment professionals
• Depletion of funds due to heavy investments in GovernmentSecurities
• Weak Investment Committee of the Board

4. Impact of 18th Constitutional Amendment

• Devolution of subject of labor to the provinces

• Consolidation of insurable employment for the purpose of pension
• Promulgation of EOB Act by Sindh Government
• Resolution passed by the KPK Assembly

5.1 Operational issues

Less Registration of Establishments

Presently, the EOBI is performing its function in limited areas of Pakistan; employees are
responsible for registering employers and their employees throughout the country. Many of the
registered employees are still suffering while majority of the workers are unable to adopt this
scheme for one reason or the other. The employees are not conversant to their rights of pension,
resultantly they do not bother to perform their role towards the registration nor make any effort
to update their contribution in their account.

As per provision of the Employees’ Old-age Benefits Act, 1976 as amended in 2008 the
Institution has to register the industry and establishment having five or more persons in its
employment. As per the report presented by the management before the Committee the
Institution has registered only 105,976 employers (72,404 active 29,685 closed and 3,887 de-
registered) throughout Pakistan, which reflects a very dismal position despite the statutory
provisions under section 1 (4) of EOB Act, which requires the industries and establishments
having five or more persons in its employment to register their employees as insured persons.
This state of affairs is very alarming, which requires special attention by the management of the
institutions to accelerate the pace of registration of industries and establishments.

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Less Registration of Insured Persons

The management of the EOBI informed the Committee that the Institution has registered only
6.5 million insured persons. Taking in view the Labor Force Survey and the legal provisions of
the Act, which provides no wages limit for compulsory insurance this, is a dismal figure of
insured persons of the formal sector in the country

Non availability of Contribution Data

As per provision of the law the old-age pension is payable when an insured person completes at
least 15 years of insurable employment and attains age of 60 years (55 years in case of woman).
There is no condition of continuity of employment in one industry/establishment. Thus the up to
date data of each and every insured person regarding registration as well as payment of
contribution is very vital. It is however noted with great concern that at present the Institution
has no such data, despite availability of an IT Division.

As reported to the Committee, the Institution has record of only few insured persons and that
two having from zero to four years on insurable employment. In view of this there are many
cases where the insured persons having genuine insurable employment could not get the benefit
while on the contrary a person with the fake record succeeds to have his pension thus causing
loss to the Fund.

Absence of Complete Computerized Data of Employer and Employee

Various complaints were registered, wherein the complainants objected the delay involved on the
part of Agency and they also reported the miscalculation of their service for pension. The agency
does not properly maintain the record of establishment regarding their business and closing in
some reported cases. The problem does not simply relate to absence of complete service record
but incomplete/reconciled computerized data of employers/employees registration, contribution,
employees service records, change of service, date of birth at the time of joining service and
other vital information required for finalization of pension/old-age grant have compounded the
problem. This mainly revolves around inattention on the part of EOBI management to fully

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computerize the record of employer and the employees and data migration from one system to
another.

Low Quality of IT Based Infrastructure

An employer is required to deposit contribution each month of the insured persons it has in its
employment without giving names or any other details of the insured persons. The names and
other details are to be submitted once every year on Form PR-02A. Any change in employment
(new joining or existing leaving) is to be reported through Form PR-02B. This clause in self has
the biggest issue of reconciliation. As 12 (at least) PR-03 slips of each employer are to be
reconciled with the one PR-02A (which contains details of each insured person) with names and
other particulars of employees for whom contribution was paid during the year

5.2Investment Issues:
General

The EOB Fund investment portfolio at present is Rs. 390 billion out of which 68% is in Fixed
Income, 54% in Real Estate and 13% has been invested in Equity Market.

The Committee was shocked to note that the Institution has stopped investment in Equity
Market and Real Estate since the last one year. This decision of institution is further eroding the
portfolio of EOBI and will further deplete the fund earlier than as stated in the actuarial report.

Non availability of investment professional

The investment department and in Pakistan Real Estate Investment and Management Company
(Pvt) Ltd (PRIMACO) is staffed with non professionals who are incompetent of taking prudent
financial decisions and at times are scared to take decisions at the right time for correct
investment. The nonprofessional attitude of the management is causing massive loss to the fund
and the institution will not be able to meet its obligations of insured persons.

Low yield in investment portfolio

The management due to non professional staff is playing safe by heavily investing in Fixed
Income, about 68% of the portfolio. Due to decreasing interest rate the returns on these
investments is decreasing each year thus reducing life of the fund.

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Weak Investment Committee of the Board

It is suggested that a strong investment committee be formed consisting of Board Members and
technical professionals to take sound and prudent decisions while investing the fund. Non
availability of professional staff in Pakistan Real Estate

No diversification of investment

Due to non-availability of technically qualified professionals in various fields on investment like

equity market, real estate and commercial investment the Institution has failed to diversify its
investment to have maximum yield from the market. In view of the depleting fund the institution
has to explore other avenues of investment i.e Domestic Real Estate Investment Trust (REIT),
Green Field Projects like Power Generation and Separately Managed Accounts (SMAs) offered
by Asset Management Companies, etc which are within the financial investment rules approved
by the Ministry of Finance

Depletion of Fund

Presently the Institution is completely stagnant and is not increasing its fund. It is not making
any efforts to enhance registration of Insured Persons to increase contributions; it is also
investing in low yield portfolios and not diversifying its investments. The old properties being
used as offices have by now reached its maximum market value. The value of all these properties
need to be reassessed and sold through open auction and the amount realized to be reinvested in
new property, which could give better dividends in future. These properties were purchased from
Investment Fund and not from non development expenditure.

Property used by the Institution

Number of properties have been purchased from the EOB Fund and is being used by the
institution for purpose of offices. The rent of these properties should be deposited by the
institution in the fund on monthly basis after assessing the market rental value of these
properties.

5. Discussion of Possible Options:

1. EXTENSION OF COVERAGE

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EOBI manages to aggressively pursue and ensure that employers register all their employees
and pay their contribution regularly. Maximum efforts should be made for the registration of
all employees working in all register-able Institutions. The EOBI should increase the scope of
register-able establishment by eliminating the various exclusions. Employers resisting to get
themselves registered under the EOBI Act and as a consequence the registration of their
employees are not registered should be prosecuted under the Act (Section 37 & 38).

A system should be devised to ensure that employees are registered by their employers.
Tampered record should be got cleared at the very outset so as to avoid any ambiguity at the time
of processing the pension claim. EOBI should establish the technical infrastructure to integrate
with commercial banks for automated collection of contributions from employers and its
prompt transmission to EOBI. Presently the Act restricts an employee for further entitlement in
case of his residing abroad; however it seems to be a harsh rule that discredits an employee from
his natural and mandatory right of pension even in unavoidable circumstances.

2. CHECK AND BALANCE

Employers who are registered with the Institution but fail to pay contributions regularly and
timely must be held accountable. A significant number of employers who understate the number
of insured persons in their employment, thereby paying lower contributions must be inquired into
through proper monitoring. Providing an online platform in order to enable speedy facilitation
services to the key stakeholders for the institution: employers, employees/insured persons and
pensioners.

The insured persons to be provided annually a statement showing contribution made by their
employers. Linking information flow across EOBI’s core business activities: submission of
employees’ details, voucher generation and payment of contribution. The institution while
receiving contribution of an employee by name and CNIC from other employee, different from
last one should inform the individual to get the verified record from the last employer.

3. LACK OF TRAINED STAFF

A well conversant EOBI official should be deputed as information officer on the reception of
office, so as to facilitate the employees and employers with regard to their queries. This may

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minimize the complaints especially illiterate employees. A detailed criteria for registration of
employer, employee and benefits to be placed at focal points of all establishments for general
awareness. Detailed guidelines with regard to mandatory documents should be placed at
entrance area of each EOBI office for information of the workers and employers.

The complaints against the staff with regard to misbehavior should be given weightage and
investigated at district level by the district incharge, in this connection his contact and address
should be available at every regional office. The EOBI should initiate campaign, and visit
establishments for creating awareness amongst employees about their rights and duties for
Pension eligibility; this will help to self-motivate the employees to provide their data and
contribution well in time.

4. SERVICE VERIFICATION

A system to maintain the record of different establishments be properly developed and it should
be quarterly updated by the agency. A time frame must be given to the applicant in case the
verification is required to be carried out for further processing of the claim. Penalty in case of
non-contribution of employee by the employer must be initiated under the relevant provision of
law without any delay. The IT system is not up to date. There are many issues with the present
online system of EOBI; e.g. it is not mandatory for every employer to use this system and it is
not protected through required amendments in the Contribution Regulations. Coupled with
frequent technical problems, the system is not delivering what it was expected to at its start in
January 2012. There is a dire need to up-grade the same and the core activities may be made
paperless.

5. NEXUS OF REGISTERED AND UNREGISTERED ESTABLISHMENTS

Firstly the institution should try its level best for registration of all establishments without delay,
however in other situation the service of employee should be counted in his pensionable service
with retrospective effect by registering the establishment immediately. The employee should be
given remedy in case of non-verification of employee record.

6. LINKAGE OF INSTITUTIONS WORKING FOR EMPLOYEES

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There should be a well-connected data base between the EOBI and Social Security
Department/Labor Department, Security &Exchange Commission of Pakistan either to check the
genuineness of any documents or to confirm the business of establishment; this may minimize
the time period for issuance of delayed cases. The same treatment should also be in practice with
regards to contribution. Till the time the system is not upgraded, these cases should be given
priority by making verification process through a special messenger.

7. TIME FRAME IN APPEAL CASES

The officer designated for the job should be well conversant with EOBI laws / SOP, preferably
an officer having law background may be assigned such jobs. The claimed data should be spelt
out while undertaking spot verification and thrust of investigation should be relevant with the
facts and law. The cases so referred or claimed for review or appeal should clearly be marked
with time frame under intimation to the claimant / citizen. In this connection necessary
instruction should also be issued by the Regional Head of EOBI to be adhered in future cases and
all pending cases must be brought to the notice of Chairman for their early disposal. The
maximum time limit to dispose of appeal filed under Section 35 should be 90 days.

8. LEGISLATIVE MEASURES:

All those amendments, which were made under various Finance Acts and are necessary for
effective application of the pension scheme, should immediately be legislated through EOB
amendment bill to be passed by both the houses of the parliament. Act may be amended to give
legal cover to the minimum pension and life pension to unmarried daughters and disabled
children. The enactment should be amended by giving a legal protection to self-contribution
scheme, which was initiated but dropped due to unavailability of any rule in entire legislation.
The enactment restricts an insured employee to get pension in case he resides abroad, which is
against the norms of natural justice. Therefore law should be amended by allowing the pensioner
to continue his right of pension while even residing abroad.

9. .INVESTMENT MEASURES

The institution has a very week investment team due to which the institution is not able to derive
maximum investment advantage from various available opportunities in the country. According
to actuarial report the pension fund will start depleting from year 2021and wiped out by year

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 2027. Therefore it is essential that the contribution be increased from the employers or as per law
the government should contribute to guarantee the minimum pension. For better returns to the
investors, it is critical to design asset allocation strategy for ten years cycle with asset classes of
fixed income, equity, real estate with percentage allocation within framework of Investment
Rules. An Investment Committee with representative from Ministry of Finance, representative
from State Bank, three representatives from amongst Investment Professionals and with the
Director General Investment EOBI may be appointed with Chairman as head of the Committee.
The Committee shall be responsible for asset allocation, investment execution through
appropriate professional institutional framework. The Board shall also be responsible for
investment decisions. It will be empowered to setup sub-committees.

6. Recommendation:
After manipulating and analysing the data, with respect to the above findings.
Ffollowing are the conclusions drawn from the findings.

1. Old age benefits institution is established to share the burden of the

employers, in Pakistan, it is the employer alone who has to contribute to these
institutions. This lack of support from the government compels him to find
ways of escape.
2. Contribution to EOBI is also avoided by simply not registering half of the
employees for benefits: throughout their careers, the employers send no
contribution on their behalf and once they reach the age of retirement (55-60
years), they are laid off.
3. Many private enterprises, hire labour on a contract basis and stays only for
three to four months. With the completion of the assignment, existing workers
are laid off and new labour is hired for the next order. This short period of
work does not allow the labourers to become eligible for any type of benefit
as three months are usually taken as the probation period before a worker can
be made permanent. Due to these unfair terms of hiring, social security and
EOBI benefits are also evaded.

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4. Many enterprises change surnames of workers in the record every three to
four months to show the Labour Department that new labour has been hired.
However, the same labour continues to work at the enterprise, often for five to
six years.
5. EOBI Institution experiences administrative problems in record keeping and
in identifying defaulters and enforcing payment. Because employees don’t
want to pay contribution they don’t give importance pension after retirement
Improve registration record of employers, employees, contributions and supply
computer-generated ledger of Accounts periodically for reconciliation and
confirmation.
6. Improve record keeping through computerization to reduce compliance cost.
7. Improving accountability and performance. Training at all levels shall be enshrined in the
culture of the organization.
8. Close monitoring, supervision and audit.
9. Awareness among workers about their rights, due benefits and labour laws can play a significant
role in reducing anti-welfare activities within the welfare institutions. Most laborers are not
aware of all the labours laws and how they can benefit from them. Awareness could be through
media including radio, newspapers, and television and workers can know how they can register
for benefits

7. Conclusion:
EOBI is an esteemed department of the country’s financial industry and it is a social department
on which a lot of people’s lives are dependent both for their personal and family’s wellbeing.
Therefore, it has to be bad mandatory that there is no room of error in this department and all the
functions operate smoothly and transparently.
The reason that this thesis suggests more than one recommendation is because such a huge
department can’t be crystalized by a few steps only.
The suggested recommendations, in our belief will work help E.O.B.I not only smoothen its
processes and procedures but also make the institute a very strong and financially benefitting
institute. With the right formulas, business investment in many ventures, supported by

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government and subsidized ventures, the company could do really well for the long run. This
would help the company’s external financial condition and the recommendations made to train
and hire the best and best employees will improve the effectiveness and efficiency of the
company. Timelines and deadlines would be met without any delay and the process would be so
transparent that any corruption would be easily spotted at the spot. The recommendations aim to
primarily help E.O.B.I strengthen all its aspects and we believe that it will very easily do it
following these steps over time. The new government has also loosened its policy which will
result in a benefitting and bright future for E.O.B.I.
The company is functioning at an okay speed today and could be greatly improved by the
constant auditing and making sure that small scale companies are being registered at time. This
will also be fulfilled by the hiring of competent, non-corrupt staff and following the suggested
steps.
Awareness among workers about their rights, due benefits and labor laws can play a significant
role in reducing anti-welfare activities within the welfare institutions. Most laborers are not
aware of all the labors laws and how they can benefit from them. Awareness could be through
media including radio, newspapers, and television and workers can know how they can register
for benefits.

Electronic copy available at: https://ssrn.com/abstract=3641448