KARACHI, May 26: The Employees Old-Age Benefits Institution (EOBI) in a short period of three years has become one of the major players in stock market.

With a total equity investment of Rs15.891 billion, the institution has made a fabulous income of Rs2.091 billion during first

10 months (July-April) of current fiscal.

The EOBI, having a total portfolio of Rs125.5 billion is today stands as one of the biggest public sector entity having diverse investment in government securities, real estate, investments in equity, strategic holding and other securities.

During first 10 months (July to April) of current fiscal, the EOBI earned Rs2.091 billion on equity investment and managed to get 27.88 per cent rate of return.

According to official figures, the EOBI during period under review earned Rs504 million towards dividend income.

Similarly, it netted Rs499 million from capital gain (realised) which took total income to Rs1.003 billion. However, the institution estimates an amount of Rs1.087 billion towards unrealised capital gain which takes total income from equity investment to Rs2.091 billion.

Consequently, the EOBI has managed to get a return of 27.88 per cent on its equity investment during July-April period.

Moving away from its traditional mode of investments, the EOBI lately turned into a vibrant body with an aggressive but reasonably calculated risk taking moves while operating in capital markets.

Under a well-defined policy investment in shares is made in blue chips and those shares which have sound financial reports.

As a result of this policy, the EOBI has managed to get a very high rate of return on its equity investment. However, still there is a long way for the institution to further move away from traditional investment as it continues to largely rely upon government securities which stand at Rs100.131 billion or 79.75 per cent of total portfolio investment.

Investment in government securities included DSCs, PIBs, and 10th issue of Wapda bonds.

Nevertheless, it is equally encouraging that equity investment at Rs15.891 billion or 12.66 per cent of total investment of the EOBI stands second.

Investment in strategic holding at Rs4.754 billion constitutes 3.79 per cent of total investment portfolio while real estate investment at Rs3.883 billion is 3.09 per cent. Investment in other securities such, as TFCs, COIs, TDR, SNTD and SSD account stood at Rs888.762 million which stands 0.71 per cent of total portfolio amount of Rs125.5 billion held by the EOBI.

It is worth mentioning that the budget estimate for the year 2006-07 was Rs18.50 billion. The pro-rata projected estimate for 10 months (July-April) stood at Rs15.416 billion, as compared to actual return of Rs16.634 billion during the period.

The actual income, however, has exceeded by Rs1.218 billion from the pro-rata budgeted target for the 10 months period.

The Employees Old Age Benefits Institution (EOBI) chairman Brig (retd) Akhtar Zamin told Dawn that proposal has been sent to government to increase the amount of minimum pension and wages in the forthcoming budget.

Presently, he said minimum pension amount is Rs1,300, raised from Rs1,000 per month in the last budget.

He further said that under Section 38-C of the Constitution, the government has to give pension to all but this could be achieved gradually.

The EOBI presently gives pension cover to only 1.683 million employees but there was a move to also include workers belonging to banking and corporate sector.

Mr Zamin said there was an urgent need to do away with exemptions by bringing informal sector, self-employed and those business and industrial units which are not under the ambit of EOBI.

He said it is the right of every worker to get pension and this is how the social responsibility of the government is discharged.