Unilateral pay hikes
Listen to article
The government's admission that National Electric Power Regulatory Authority (Nepra) board members unilaterally increased their salaries without the federal cabinet's prior approval is a glaring example of governance that prioritises self-interest over public accountability. The problem is not just the doubtful legality of the exercise, but a question of in what world can Nepra's board members justify raises of around 300%.
The Nepra chairman's salary has soared from Rs790,000 to almost Rs3.25 million per month, while each board member now enjoys a monthly salary exceeding Rs2.94 million, up from about Rs740,000.
While the previous salaries were tied to the highest tier of management pay (MP) scales, the current structure has no precedent and appears to have been decided on a whim. We must also note that the entire argument for having MP scale salaries is to get top talent from the private sector to offer their services to the public sector and perhaps improve the performance of state institutions.
But in reality, a large number of MP scale hires are retired bureaucrats with little to no private sector experience, but deep connections to the corridors of power. Because of this, many MP-scale jobs are nothing more than post-retirement rewards for bureaucrats with connections to the government of the day.
Inexplicably, several roles for which people are nominated, rather than competitively hired, also offer MP-scale salaries, opening the door for political patronage and doling out of questionable unapproved compensation and perks, despite the fact that thousands of competent and qualified Pakistanis would be willing to take these jobs at the officially approved salary levels.
Even in the case of Nepra, it is worth noting that the chairman is a retired bureaucrat, and despite having some power sector experience, none of it was in the private sector. If the Nepra board members really think they deserve such ludicrously high salaries, they should immediately be afforded opportunities to actively seek employment in the private sector.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
an hour ago
- Express Tribune
K-P to unveil Rs2tr tax-free budget
The Khyber-Pakhtunkhwa government is set to present a Rs2,000 billion budget tomorrow, with over Rs1,800 billion allocated for current expenditures. The budget will show a surplus of Rs180 billion and will not introduce any new taxes. However, the scope and rate of existing taxes will be expanded. A total of Rs433 billion has been earmarked for development projects, including funds for the development of the newly merged tribal districts. The government will also announce the imposition of an "education emergency" in the new fiscal year. Under this initiative, furniture will be provided to 100 per cent of public schools. To boost its own revenues, the province has set a 40 per cent higher target for provincial tax collection compared to the current fiscal year. The new budget includes the establishment of four additional cardiac centers in addition to the existing ones, as well as special funds for the merged districts. Measures to support the province's vulnerable, marginalized, and low-income populations are also part of the budget. Funding has been allocated for key infrastructure and welfare projects including the Peshawar-DI Khan Motorway, a new electricity transmission line, the establishment of an insurance company, and the Chashma Right Bank Canal. Safe City projects in Peshawar, Bannu, and DI Khan will receive financial support, and the education budget is being increased by 13 per cent. The monthly honorarium for artists will also be raised from Rs100,000 to Rs150,000. A significant portion of the development budget will focus on completing ongoing projects. Priority will be given to projects that are 80 per cent or more complete, followed by those with 60 per cent completion. The number of new development projects has been capped at 500, with Rs195 billion to be immediately released, and up to Rs250 billion allocated as needed. For the first time, a special committee will be formed to approve projects based on priority and necessity. The budget will continue to prioritize the education, health, and social welfare sectors. Additionally, the 13-year throw-forward period for the Annual Development Program (ADP) will be reduced to seven years. A safari park is also planned for Misri Banda in Nowshera as part of the new fiscal year's initiatives. The federal government is set to allocate a total of Rs1,342.78 billion to K-P from the divisible pool for the upcoming fiscal year 2025-26, which will raise the province's overall budget to approximately Rs2,000 billion. For the ongoing fiscal year 2024-25, the federal government was expected to provide Rs1,221.53 billion. However, according to revised estimates, the actual amount transferred to the province stood at Rs1,135.66 billion by the end of the fiscal year. In the upcoming fiscal year, the merged tribal districts will receive a Rs40 billion subsidy in the energy sector. This is a reduction from Rs65 billion allocated during the current fiscal year. Additionally, the federal government will provide Rs80 billion in special grants to these merged districts — an increase from Rs66 billion allocated in the current year. Under the Public Sector Development Programme (PSDP), the merged tribal areas will be allocated Rs65.44 billion, compared to Rs70 billion in the current fiscal year.
Business Recorder
7 hours ago
- Business Recorder
Pakistan's remittances hit $3.7bn in May, up 16% MoM
Remittance inflow since Jan 2024 Figures in USD Billion The inflow of overseas workers' remittances into Pakistan stood at $3.7 billion in May 2025, the State Bank of Pakistan (SBP) data showed on Wednesday. Remittances increased by 13.7% year over year, compared to $3.24 billion recorded in the same month last year. On a monthly basis, remittances were up 16%, compared to $3.18 billion in April. Cumulatively, with an inflow of $34.9 billion, workers' remittances increased by 28.8% during Jul-May, FY25, compared to $27.1 billion received during Jul-May, FY24. Home remittances play a significant role in supporting the country's external account, stimulating Pakistan's economic activity as well as supplementing the disposable incomes of remittance-dependent households. In April, SBP Governor Jameel Ahmad said that given the strong level of remittances, the current account would remain in surplus throughout this fiscal year. 'There will be a substantial surplus, and this is the best performance on the external account during the last two decades,' he said, back then. Breakdown of remittances Overseas Pakistanis in Saudi Arabia remitted the largest amount in May 2025 as they sent $913.9 million during the month. The amount was up 26% on a monthly basis, and nearly 12% higher than the $819 million sent by the expatriates in the same month of the previous year. Inflows from the United Arab Emirates (UAE) inched up by 16% on a monthly basis, from $652.6 million in April to $754.2 million in May. On a yearly basis, remittances jumped nearly 13%, as compared to $668.4 million reported in the same month last year. Remittances from the United Kingdom amounted to $588.1 million during the month, up by 10% compared to $535.1 million in April 2025. YoY inflows from the UK improved by 24%. Overseas Pakistanis in the US sent $314.7 million in May 2025, a MoM increase of 4%.
Business Recorder
8 hours ago
- Business Recorder
Minimum wage to remain unchanged at Rs37,000 in FY26, says Aurangzeb
Finance Minister Muhammad Aurangzeb on Wednesday said the government hadn't increased the minimum wage in the budget for the financial year 2025-26 and it would remain at Rs37,000 per month. The finance minister didn't mention about the minimum wage in his budget speech on Tuesday, as he announced Pakistan's federal budget 2025-26 'for a competitive economy' on Tuesday, targeting a modest 4.2% growth for the coming fiscal year, compared to 2.7% expected in the outgoing FY25. The budget was announced with a total outlay of Rs17.6 trillion, down 7% or Rs1.3 trillion as compared to the Rs18.9 trillion budgeted outlay of FY25. Key highlights of Pakistan budget for 2025-26 Last year, the government increased the minimum per month wage to Rs37,000 from previously Rs32,000. However, the government has kept it unchanged this year. This comes despite a demand from a key ally of Pakistan Muslim League - Nawaz (PML-N) led government, Pakistan People's Party (PPP) to increase the minimum wage to Rs50,000.
