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Express Tribune
07-07-2025
- Business
- Express Tribune
Govt lifts cap on bureaucrats' fee
The federal cabinet has withdrawn its one-year-old decision to cap the board fees of top bureaucrats at a cumulative Rs1 million per annum after an overwhelming majority of them did not obey the decision. Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar were the driving force behind the federal cabinet's decision in June 2024 to limit the fee at Rs1 million and surrender the surplus amount to the national kitty. The board fee goes as high as $5,000 for one board in certain cases, while in the majority of cases, the fees for attending one board meeting of some government-owned enterprises range from a few thousand to hundreds of thousands of rupees. The cabinet division withdrew its decision on June 22, according to a notification issued by the finance ministry this month. "In pursuance of the Cabinet Division decision dated 22-06-2025, the Finance Division's letter dated 10-07-2024 and Office Memorandum stand withdrawn ab-initio," reads the notification. In June last year, both the prime minister and the deputy prime minister held the view that these bureaucrats should keep only a portion of the hefty board fees and surrender the remaining amount to the exchequer. The premier had serious objections to bureaucrats receiving up to $5,000 or Rs1.4 million for a single board meeting. At least two government entities, Pak-Arab Refinery Limited (PARCO) and Pakistan Telecommunication Limited (PTCL), pay around Rs1 million or more in fees for every board meeting. The secretaries of finance, petroleum, privatisation, and information technology are members of these boards. There are also boards where the fees range from Rs100,000 to Rs250,000 per meeting. In 2023, then-finance minister Ishaq Dar had announced that government servants should retain a maximum of Rs600,000 annually in board fees and deposit the rest. However, this decision was never implemented. The finance ministry has also withdrawn its office memorandum, which stated: "It has, therefore, been decided to reiterate those instructions that the government servants appointed to the Board of companies, organisations, and who become entitled to fees, shall only be allowed to retain remuneration to a maximum of Rs1 million in a financial year. Any amount more than Rs1 million so received shall be deposited by the officer in the government treasury, and a record of the same shall be promptly provided to the administration wing of the respective Ministry and Division." Since hardly any bureaucrats complied with the decision, the cabinet decided to withdraw last year's decision ab-initio, as if it had never been taken. Austerity measures The finance ministry also notified the continuation of austerity measures for the fiscal year 2025-26. The austerity measures will also apply to all federal government-attached departments, state-owned enterprises, and statutory bodies, including regulatory authorities. In the case of SOEs, these austerity measures will be considered a directive of the federal government under Section 35 of the SOEs Act of 2023 and under relevant sections of their respective organic laws for statutory bodies, according to the notification. These measures are introduced annually to reduce expenditures across various government departments, including the abolition of vacant positions, a ban on the purchase of new vehicles and machinery, and restrictions on officials' foreign travel. The austerity measures were adopted to control government expenditures. Under these measures, the government banned the purchase of new vehicles and equipment for various departments. The notification stated that only operational vehicles, such as ambulances and other medical equipment vehicles, fire engines, buses and vans for educational institutions, solid waste vehicles, and motorcycles, could be purchased if needed. However, the government of Prime Minister Shehbaz Sharif has purchased vehicles for federal ministers and officers of the Federal Board of Revenue (FBR). FBR vehicles bearing the FBR logo, bought last month, can be seen being irregularly used by officers for private purposes. Similarly, the purchase of machinery and equipment for various government departments would also be prohibited. The notification clarified that only machinery and equipment needed for hospitals, laboratories, agriculture, mining, and schools could be purchased. The ministry also imposed a ban on the creation of new posts and temporary posts, except for positions under Public Sector Development Project (PSDP)-funded projects. According to the notification, all posts lying vacant for the last three years would be abolished. Procurement of goods under PSDP-funded projects would be exempt from this ban. Additionally, there would be a complete ban on government-funded treatment abroad and all unnecessary foreign trips. Ad-hoc salary notification The finance ministry has also notified a 10% salary increase for Armed Forces personnel, Civil Armed Forces, and all civil employees of the federal government, as well as civilians paid from defence estimates and contract employees employed against civil posts in basic pay scales under standard terms and conditions. The decision had been announced in the budget. The finance ministry also notified a 7% increase in net pensions for all civil pensioners of the federal government. The increase will also apply to family pensions granted under the Pension-cum-Gratuity Scheme, 1954, and Liberalised Pension Rules, 1977.
Business Recorder
02-06-2025
- Business
- Business Recorder
Minister visits PARCO headquarters
KARACHI: Federal Minister for Petroleum, Ali Pervaiz Malik, accompanied by the Additional Secretary (Policy), Petroleum Division Zafar Abbas visited the Corporate Headquarters of Pak-Arab Refinery Limited (PARCO). He was received by Irteza Ali Qureshi, Managing Director, PARCO, along with the Company's senior leadership team. During the visit, the minister was given a comprehensive briefing on PARCO's modular growth strategy, its fifty-year legacy of operational excellence, and its future strategic roadmap. The briefing highlighted PARCO's vital role in strengthening Pakistan's energy infrastructure through innovation, efficiency, and sustainability. Pervaiz Malik acknowledged the significance of PARCO's contribution to Pakistan's energy landscape and appreciated the Company's efforts to maintain high standards of operational excellence and strategic foresight. His visit underscores the government's support for institutions like PARCO that are playing a pivotal role in meeting the country's growing energy demand. Copyright Business Recorder, 2025
Business Recorder
07-05-2025
- Business
- Business Recorder
PARCO board: Senate body expresses reservations over selection criteria
ISLAMABAD: A parliamentary panel on Tuesday expressed its serious reservations over appointment of a parliamentarian and former bureaucrat as members of the board of directors of Pak-Arab Refinery Limited (PARCO). The Senate Standing Committee on Petroleum held its meeting on Tuesday under chairmanship of Umer Farooq which discussed in detail the tenure of managing directors and composition of boards of all oil and gas companies. Member Committee Saadia Abbasi criticised the selection criteria of the board of PARCO which has Federal Minister Senator Ahad Khan Cheema as member and some retired bureaucrats on the board. Senator Saadia Abbasi asked the Minister for Petroleum, 'Can a senator be appointed as a board member if yes than other parliamentarians should also be provide opportunity to become a member of the board to show their ability.' She responded to Federal Minister for Petroleum Ali Pervaiz Malik's statement that the board had been constituted under public limited company Act. He further contended that Ahad Khan was not part of parliament when the board was constituted. However, she insisted that she remembered he was part of interim government at that time. In 2023, Ahad Cheema was appointed as the Adviser to the Prime Minister on Establishment Division following Shehbaz Sharif's appointment as prime minister of Pakistan. He continued to serve in this role during the caretaker government after Shehbaz Sharif's first term ended. However, the Election Commission of Pakistan ordered the caretaker government to remove Cheema from the caretaker cabinet following a petition filed against him. The president of Pakistan approved his removal in December 2023. The tenure of present board of the PARCO has been from May 22, 2023 to May 21, 2026 for a period of three years. She showed her serious reservation on a retired bureaucrat Mohammad Jehanzeb Khan as independent director of the board. She argued that other competent former bureaucrat must have the equal opportunity to serve the board. In ten-member board, Secretary Petroleum Division Momen Agha is chairman, Secretary Finance Division (Ex-officio Director), MD (Executive), AftabHussain, Ahad Khan Cheema, Mohammad Jahanzeb Khan (independent directors), Adnan Omar Mohamad Bu Fateem (Vice Chairman), Zayed Al Mazrouei, Friedrich Danzinger, Muqeet Amin Bawa (Abu Dhabi Petroleum Investments LLC). PARCO is a fully integrated energy company and is one of the largest companies in Pakistan's corporate sector. A Joint Venture between the Government of Pakistan (60 per cent) and the Emirate of Abu Dhabi (40 per cent), PARCO is a leading energy company incorporated as a public limited company in 1974 through its Mubadala Investment Company. A parliamentary panel on Tuesday recommended the Petroleum Division to carry out audit of the accounts of Oil and Gas Development Company from international renowned international firms as the company is paying Rs 4.5 million per day for a rented oil rig. Copyright Business Recorder, 2025
