Parliamentarians get lucky

December 18, 2016

The more than 100 per cent raise in MPs salaries has raised questions about their private businesses and issues like conflict of interest

Parliamentarians get lucky

A serious debate has ensued over the controversial 146 per cent increase in the salary, perks and privileges of the 446 members of the lower and upper house of the parliament in Pakistan. The raise, effective from October 1, 2016, will cost the government approximately Rs2.6 billion annually.

With the increment, Pakistani parliamentarians will surpass Indian MPs in terms of salary and other benefits. They will now earn over Rs.5.7 million per year, almost twice as much as their Indian counterparts that draw Rs.3.2 million per year. According to an official at the Finance Division, Pakistani parliamentarians will rank second in the global pay rankings, after countries like US, UK and those that operate under the EU umbrella.

The same source also discloses that, based on the wishes of Finance Minister Ishaq Dar, in the next fiscal year the MPs are likely to be allowed a 10-20 per cent increase in their expenditures.

It would, therefore, be pertinent to ask if this staggering increase is justified? "I personally consider it a move by the PML-N to appease their angry backbenchers," says PPP MNA Nafisa Shah. She questions the legality of salary increase and adds, "The parliament is generally authorised to raise its own perks and privileges. Why was PM Sharif authorised to do it this time?"

However, the 146 per cent increase has brought the salary of parliamentarians somewhat at par with that of generals and judges. A three-star general (BPS 22) earns around Rs0.7 million a month including perks and privileges. Similarly, judges of the Supreme Court draw around Rs0.6 million a month in addition to a judicial allowance of around Rs259,000 a month.

Also, generals, secretaries and judges are entitled to official residences where electricity and other household expenditures are borne by the government. Their families are also entitled to a medical allowance.

Based on the revised salary structure, the speaker of National Assembly and the chairman of Senate will draw an estimated Rs400,000 each, while the deputy speaker of National Assembly and the deputy chairman of Senate will get Rs350,000. The new basic salary for an MP is around Rs170,000, in addition to Rs2,000 daily allowance, Rs2,000 per day for conveyance and Rs3,000 as housing allowance when the parliament is session.

However, the salary of a federal secretary (BPS 22) at Rs0.3 million is still low.

PPP MNA Nafisa Shah questions the legality of salary increase. "The parliament is generally authorised to raise its own perks and privileges. Why was PM Sharif authorised to do it this time?"

One is reminded of the days when the Pakistan Peoples’ Party (PPP) government increased the salary of armed forces by 100 per cent to improve their performance. Similarly, judges who got a hefty raise in the previous government of PPP are said to be the highest earning government employees. As part of the judicial reform package initiated by former Chief Justice Iftikhar Chaudry, former President Asif Ali Zardari announced salary and other allowances for the judges of the Supreme Court and high courts through a presidential order under the provision of the 5th Schedule to the Constitution.

State Minister for Information and Broadcasting Maryam Aurangzeb defends the government’s decision to increase MPs’ salary. "It was long due. It’s a full time job. You must be compensated to be a member of the parliament."

"Increasing MPs’ salaries is not an issue, the real issue is their side jobs. We could find many MPs who were more loyal to their private businesses than the state interests," says Ahmed Bilal Mehboob, President of the Pakistan Institute of Legislative and Development (Pildat).

Mehboob urges the government to develop strict rules to minimise misuse of public office and control conflict of interest of legislators. "They must disclose all their monetary interests."

Senior lawmakers reveal that Pakistan does not have a register that documents performance of senators or National Assembly members. Many lawmakers, Senate Chairman Raza Rabbani in particular, wanted a register like the one maintained in the British Parliament where all the UK MPs are registered. This register contains information on the members’ financial interests and benefits that he or she may be receiving. They must get themselves registered within 28 days of their election.

But both the provincial and federal governments have yet to form tough laws to check there is no conflict of interest in the working of people’s representatives. Pildat maintains that Pakistan is one of 72 countries that have no mechanism in place to evaluate the performance of their parliamentarians.

Though the government servants are barred under the Government Servants Conduct Rules, 1964, proposals to form an ethics commission for lawmakers and civil servants are pending in the parliament.

The National Conflict of Interests Bill 2016 was moved by PTI MNA Murad Saeed is still pending with the National Assembly. A similar legislation was passed by the PTI in the KP Assembly this year.

MNA Murad Saeed says he can count dozens of examples of legislatures and government employees who were involved in conflict of interest cases. The bill demands establishment of an independent commission that measures conflicts of interest and determine if this act is contravened. "My proposed bill seeks government’s maximum involvement to minimise the possibility of conflicts arising between the private interests and public duties of public office holders, MPs’ interests in particular."

Even the Election Commission of Pakistan wants these proposed laws to come into force whereby lawmakers are compelled to declare their ‘controlled assets’ -- assets whose value could be directly or indirectly affected by the government decisions or policy.

Lt General (retd) Talat Masood says that "Indian generals live in small flats and use old cars, while we enjoy huge increase in salaries and perks annually". He urges the government "to increase the basic salary of lower-ranking government employees".

Experts maintain that the huge raise in the MPs’ salary is in sharp contrast to the average wages set in the country (Pakistan is ranked 122nd out of 138 countries as per the Global Competitiveness Index 2016-17). This controversial raise may distort the country’s public sector remuneration structure where the minimum wage is Rs14,000.

Former MNA Bushra Gohar says, "I don’t understand why the PML-N government has approved a huge raise for the MPs. It is unjustified, and is an excessive burden on the exchequer." She would like the government to reconsider and revise the decision. She would rather see the minimum wage increased.

"It is also important that the rules should be amended to withhold salaries, perks and privileges of members who don’t attend sessions for extended periods," she adds.

MQM MNA Rashid Gudail says, "MPs can live without drawing a salary. It is a public service job". But, he continues, "since MPs’ job is full-time, he may need money to run his kitchen." He suggests some sort of legislation to stop corrupt members from entering the parliament.

Parliamentarians get lucky