Nepra under scrutiny for unapproved threefold salary increase

ISLAMABAD: The federal government has taken notice of the unauthorised salary hike by the National Electric Power Regulatory Authority (Nepra) and issued a show-cause notice, questioning the decision to increase salaries without cabinet approval.

During a meeting of the Senate Standing Committee on Cabinet Secretariat, chaired by Rana Mahmood-ul-Hassan, government officials confirmed that Nepra had been served the notice over the unauthorised salary hike.

The chairman and members of the national power regulating authority had nearly tripled their salaries without obtaining the necessary approval from the federal cabinet.

According to sources, any salary increase requires cabinet approval, but Nepra officials bypassed this process, raising salaries by Rs2 million to Rs2.2 million.

Cabinet Secretary Kamran Ali Afzal said that Nepra had been asked to provide reasons for the salary hike. He added that the increase violated Section 8 of the Nepra Act, and the authority must submit a written explanation for its decision.

Afzal further emphasised that all regulatory bodies fall under the jurisdiction of the prime minister or the federal cabinet.

The increase was implemented under the pretext of ad hoc relief and regulatory allowances. A revised notification issued in October 2023 set the total salary and benefits at Rs1 million.

As per the sources, the Nepra chairman and all four members fall under the MP-I pay scale. Following the increase, the chairman's salary has exceeded Rs3.2 million, while the four members now receive up to Rs2.9 million each.

Speaking to Geo News on Tuesday, former Nepra chairman Tauseef H Farooqi stated that during his tenure, which lasted until August 2023, his total monthly salary was Rs790,000. He added that Nepra members at the time were receiving Rs740,000 per month.

Farooqi said that only the federal cabinet had the authority to approve salary increases for Nepra officials.