The federal government has issued a show-cause notice to the National Electric Power Regulatory Authority (Nepra) for unilaterally increasing salaries without obtaining approval from the federal cabinet.
During a meeting of the Senate Standing Committee on Cabinet Secretariat, chaired by Rana Mahmood-ul-Hassan, government officials confirmed that Nepra had bypassed necessary procedures to implement the salary hike.
The chairman and members of the regulatory authority reportedly tripled their salaries without securing the required approval, raising them from Rs2 million to Rs2.2 million. Sources revealed that such increases are subject to federal cabinet approval, which Nepra officials deliberately circumvented.
Cabinet Secretary Kamran Ali Afzal stated that Nepra had been directed to explain its decision and submit a written justification. He highlighted that the increase violated Section 8 of the Nepra Act, which governs such matters, and reaffirmed that all regulatory bodies operate under the jurisdiction of the federal cabinet or the prime minister.
The salary adjustments were introduced under the guise of ad hoc relief and regulatory allowances. However, a revised notification issued in October 2023 had previously set the total salaries and benefits for these positions at Rs1 million. Following the recent unauthorized increases, the chairman’s salary now exceeds Rs3.2 million, while each of the four members receives up to Rs2.9 million, despite their placement under the MP-I pay scale.
The former Nepra chairman disclosed that during his tenure, which ended in August 2023, his total monthly salary was Rs790,000, and Nepra members earned Rs740,000 per month. Farooqi emphasized that only the federal cabinet holds the authority to approve salary increases for Nepra officials.
The incident has raised concerns about transparency and regulatory compliance within Nepra, with government officials warning of further action pending the authority’s explanation.
