Islamabad: The Federal Cabinet has approved a five-year extension of the exemption on the import of life-saving medicines used in hospitals and relevant health institutions, particularly for cancer and heart disease.

The decision was made during a cabinet meeting held in Islamabad on Wednesday and chaired by Prime Minister Mian Muhammad Shehbaz Sharif.

These medicines are critical for saving lives, and the exemption aims to ensure their immediate availability. They will be distributed exclusively through hospitals and affiliated institutions, while their public retail sale will remain prohibited. Importation of these drugs will require prior approval from the licensing authority.

The cabinet also approved a 15 percent increase in pensions under the Employees' Old Age Benefits Institution (EOBI), effective from January this year. The institution will finance the increase through its own resources.

Prime Minister Shehbaz Sharif also directed the formation of a cabinet committee to initiate institutional reforms within the EOBI. The committee will examine proposals for extending old age benefits to workers in the informal labor sector, including domestic helpers, agricultural laborers, and other underserved groups. These reforms aim to safeguard the rights of workers who have long been overlooked.