ISLAMABAD  -  The federal government has issued a show-cause notice to National Electric Power Regulatory Authority (NEPRA) to explain the reason behind such a massive hike of over 200 percent in the remunerations of the regulator top brass, including its chairman and members, in gross violation of Section 8 of the NEPRA Act.

The revelation was made by secretary cabinet, while briefing the Senate Committee on Cabinet Secretariat here. The issue of abnormal hike in the remunerations of NEPRA chairman and members echoed 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 PM, Federal Cabinet or Cabinet Division. NEPRA is not empowered to increase their remunerations on their own, he added.

Kamran Ali Afzal said that the NEPRA must have to explain in writing the reason behind such a big decision. Show-cause notice has been served to NEPRA for this gross violation of NEPRA Act, he said and added that all regulatory bodies fall under the purview of the Prime Minister or the Cabinet, which have the authority to determine salaries.

It is worth to note that chairman NEPRA and its members have approved a hike of over 200 percent in the remuneration of its chairman without taking the Cabinet Division in loop. The total gross salary of the NEPRA chairperson has increased to approximately Rs3.25 million and of its officials to around Rs2.95 million.

The DG of the 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 committee took up the government bill titled “The Pakistan Telecommunication (Re-organisation) (Amendment) Bill, 2025”, which was introduced by Senator Azam Nazeer Tarar, Minister for Law and Justice, on behalf of the Minister Incharge of the Cabinet Secretariat during the Senate sitting held on January 24, 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 secretary of the Cabinet Division gave a comprehensive briefing on the reasons for the delay in finalising 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 emphasised 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 and 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 DG 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 (KP) 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 country’s sustainable growth and development.