ISLAMABAD: The government is in action against the “unbridled” National Electric Power Regulatory Authority (NEPRA) for raising their own salaries and other perks without taking the Cabinet Division loop.
The issue of increase in salaries and allowances of NEPRA Authority came under discussion in a meeting of Senate Standing Committee on Cabinet Division presided over by Senator Rana Mahmood ul Hassan.
Secretary Cabinet, Kamran Ali Afzal apprised the Committee that that Authority’s top officials have violated Section 8 of the NEPRA Act by hiking their salaries without seeking formal approval by the PM, Federal Cabinet or Cabinet Division.
According to Secretary Cabinet, NEPRA Authority is not empowered to increase their remunerations on their own.
“The NEPRA Authority must have to explain in writing the reason behind such a big decision,” Secretary Cabinet said adding that Show-Cause notice has been served on them for this gross violation of NEPRA Act. He further argued all regulatory bodies fall under the purview of the Prime Minister or the Cabinet, which has the authority to determine salaries.
The committee was briefed by NEPRA officials on tariff determination for IPPs. Muhammad Yousaf, Additional Director General (DG) Tariff NEPRA, stated that tariff determination falls strictly under the NEPRA Act and is based on federal government guidelines. He added that all IPPs were established before NEPRA’s formation.
Senator Saifullah Abro raised serious concerns over alleged over-invoicing in power projects, pointing out cost discrepancies. He cited the example of the newly established Jamshoro Coal Power Plant, which was built at a cost of $1.28 billion, whereas older projects like Port Qasim and Sahiwal coal plants were installed at significantly higher costs of around $2 billion many years back. He also questioned the legality of KAPCO’s contract extension.
The Committee took up the Government Bill titled “The Pakistan Telecommunication (Re-organization) (Amendment) Bill, 2025,” which was introduced by Senator Azam Nazeer Tarar, Minister for Law & Justice, on behalf of the Minister In-Charge of the Cabinet Secretariat during the Senate sitting held on 24th January 2025. Senator Anusha Rahman who was a special invitee on the matter raised the point that the Bill may be introduced through the ministry of IT since it comes under the Ministry’s purview under the rules, after a debate on the pointed raised the committee decided to defer the matter till the next meeting
The Director General of the National Electric Power Regulatory Authority (NEPRA) provided details regarding the determination of tariffs, equity, capacity payments, and energy payments to Independent Power Producers (IPPs) from the start until the present. Senator Saifullah Abro raised concerns about the tariffs given to three power plants, and the Chairman deferred the matter with the directions to give report on the matter in the next meeting
The Secretary of the Cabinet Division gave a comprehensive briefing on the reasons for the delay in finalizing the procurement rules and establishing the Board of Management for the Pakistan State Oil (PSO). The matter was referred to the Ministry of Petroleum for further action.
The Oil and Gas Regulatory Authority (OGRA) representative provided a detailed briefing on the status of procurement rules and the management boards of government-owned Oil Marketing Companies (OMCs), especially those similar to PSO. Additionally, a report was presented on the latest actions taken to control circular debt, particularly in relation to sales tax refunds to PSO and similar companies. The Committee decided to refer these matters to the Ministry of Petroleum for follow-up.
The Managing Director of the Printing Corporation of Pakistan (PCP) presented a briefing on the performance of the corporation over the past three years. It was noted that PCP operates three presses located in Islamabad, Lahore, and Karachi. The Committee raised the issue of onboarding new members and recommended the inclusion of Parliamentary members in the onboarding process. The Chairman also emphasized PCP’s role in printing essential government documents such as the Public Extraordinary Gazette of Pakistan and the session proceedings for the Senate and National Assembly.
The Chairman of the National Anti-Money Laundering & Counter Financing of Terrorism (NAML & CFT) Authority briefed the Committee on the Authority’s work and performance. A concern was raised by Senator Saadia Abbasi regarding the increasing links between money laundering and terrorism. The Chairman assured the Committee of ongoing efforts to address these challenges.
The Director General of the Cannabis Control and Regulatory Authority (CCRA) provided an update on the working and performance of the Authority. He highlighted the potential for creating employment opportunities in Khyber Pakhtunkhwa (KPK) through the cannabis industry. The key objective of the National Cannabis Policy 2024 was discussed, focusing on the economic and market growth of industrial and medicinal cannabis, the regulation of cannabis-related activities, and the social and health impact of cannabis usage. The Chairman also requested assistance from the Ministry of Housing for accommodation support for CCRA staff.
The meeting concluded with discussions on the importance of transparency and collaboration across these key sectors to ensure the country’s sustainable growth and development.
Meeting was attended by Senator Rana Mahmood ul Hassan, Senator Saleem Mandviwalla, Senator Saifullah Sarwar Khan Nyazee, Senator Saadia Abbasi,Senator Atta-Ur-Rehman, Senator Saifullah Abro and Senator Anusha Rahman Ahmed Khan, along with other relevant department.
Ends
