PPMC MD’s salary raised to Rs 3.2 million without evaluation. AGP

ISLAMABAD: The Auditor General of Pakistan (AGP) has expressed surprise over the “audacity” of the Board of the Power Planning and Monitoring Company (PPMC) for more than doubling the remuneration package of its Managing Director (MD) without conducting any performance evaluation.
Referring to Provision 6 of Chapter 3 of the State-Owned Enterprises (SOE) Act, 2023, the audit report states that every SOE is required to operate in accordance with principles of sound and prudent management, ensuring integrity, objectivity, due care, and professional competence commensurate with the nature and scale of its operations.
According to the original advertisement for the post of MD PPMC, the salary package was specified under PPMC Scale P-7, ranging between Rs1.5 million and Rs2.0 million per month, along with transport and other benefits as per company policy.
However, during the audit of PPMC for the financial year 2024-25, it was observed that the appointment process deviated significantly from the advertised terms and conditions. Initially, the position carried an age limit of up to 55 years, but the Board subsequently re-advertised the post without any age restriction.
Following the recruitment process, the top-ranked candidate declined the offer, after which the Board appointed the second candidate on the merit list, a former CEO of CPPA-G, at the maximum advertised salary of Rs2.0 million per month. Audit findings revealed that a revised offer letter was issued almost immediately, introducing a clause allowing future revisions in the pay scale.
Subsequently, the Board reviewed the company’s pay structure and increased the MD’s salary to Rs3.2 million per month even before the completion of his four-month probation period. The audit noted that this increase was granted without any formal performance evaluation and was inconsistent with the originally advertised salary package.
The audit further observed that had such revised terms been disclosed upfront, the recruitment process could have been more transparent and competitive. It also raised concerns that the swift revision in salary terms suggested prior knowledge of the impending pay scale enhancement.
According to the audit, this lack of transparency and equal opportunity resulted in a non-transparent hiring process at PPMC.
The matter was taken up with PPMC management in December 2025 and subsequently reported to the Ministry in January 2026. In its response, the management stated that after the first candidate declined the offer, the second candidate was appointed strictly on merit at the advertised salary, without any deviation. It further argued that the revision of the MD’s pay scale was carried out in accordance with the SOE Ownership and Management Policy, 2023, and was approved by the competent authority.
During its meeting held on February 6, 2026, the Departmental Accounts Committee (DAC) directed the management to submit a complete chronological record of the case, supported by documentary evidence, to the audit within one week. The DAC also instructed that the case regarding revision of the MD’s pay scale and enhancement of the remuneration package be referred to the Finance Division, through the Ministry of Energy (Power Division), for concurrence, and that the outcome be shared with the audit authorities.
The audit report noted that no further progress had been communicated until the finalisation of the report and recommended that the management ensure compliance with the DAC’s directives.