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Express Tribune
03-07-2025
- Business
- Express Tribune
NA secretariat denies role in speaker's salary hike
The Spokesperson of the National Assembly Secretariat on Thursday clarified that neither the speaker's office nor the National Assembly Secretariat had any role in the salary increase of the Speaker. In a move that has raised eyebrows, the government had approved over fivefold increase in the salaries of Senate chairman and National Assembly speaker, taking it to Rs1.3 million a month. According to a notification dated May 29, the Senate chairman and NA speaker's salaries have been raised from Rs205,000 to Rs1.3m, besides 50pc of the revised salary (Rs650,000) as the sumptuary allowance. The hike, with retrospective effect, has become effective in January 2025. Addressing the matter, the spokesperson said the summary for the salary hike was prepared by the Ministry of Parliamentary Affairs. The summary was then forwarded by the ministry and approved by the federal cabinet.
Express Tribune
15-06-2025
- Business
- Express Tribune
A raise too far
Listen to article At a time when the majority of Pakistanis are tightening their belts in the face of relentless inflation and shrinking incomes, news of the astronomical hike in salaries and allowances for top government officeholders has rightly provoked public outrage. That the monthly remuneration of the National Assembly Speaker and Senate Chairman has jumped from Rs205,000 to a staggering Rs1.3 million — with total benefits exceeding Rs2 million — is not just tone-deaf but also a betrayal of public trust. What makes this even more egregious is the timing. Only weeks ago, the federal budget offered a paltry 7% increase to government employees, many of whom already struggle to make ends meet. Meanwhile, there has been no meaningful movement on increasing the minimum wage, which remains grossly insufficient to support a family in today's economic climate. Adding insult to injury is the fact that this is not the first instance of unjustified self-enrichment. Members of the National Assembly and superior judiciary have already benefitted from earlier hikes, further fuelling the perception that the public office increasingly serves the personal interests of the elite. It is perhaps in recognition of this backlash that a key federal minister has now hinted at reviewing, or even withdrawing, the salary increase. But this backpedaling, while welcome, raises an uncomfortable question: how was such an insensitive proposal approved in the first place? Where is the accountability within the system that allows such decisions to pass through unnoticed — until the public reacts? The government must do more than merely reverse this raise. It must restore credibility by committing to a transparent and needs-based salary structure for all public servants. Any increases must be benchmarked against national economic indicators and the financial hardships faced by the average citizen.
Express Tribune
14-06-2025
- Business
- Express Tribune
Sadiq, Gilani deny role in salary hike
National Assembly Speaker Sardar Ayaz Sadiq on Friday clarified he had no role in the phenomenal raise in the salaries of the custodians of the upper and lower house of parliament, and that those who had given that raise could also withdraw it. Sadiq was responding to a comment of the leader of opposition in the National Assembly, Omar Ayub, who during the budget session on Friday, said the government speaks of austerity but is committing "financial obscenity". The phrase — financial obscenity — was earlier used by the defense minister, Khawaja Asif, to describe a 500% raise in the salaries of the NA speaker and deputy speaker and the Senate chairman and deputy chairman. A report citing sources had claimed that Senate Chairman Yousaf Raza Gillani, who belongs to the PPP, presided over a meeting of the House Finance Committee a few months back to approve the raise in his own salary as well as that of the deputy chairman, Sardar Syedaal Khan Nasar of the PML-N It also claimed that NA Speaker Sardar Ayaz Sadiq of the PML-N chaired a similar meeting of the NA's House Finance Committee to "quietly" greenlight a raise in his own salary and that of the NA deputy speaker, a post held by PPP's Syed Ghulam Mustafa Shah. Responding to Omar's comment on Friday, Ayaz Sadiq said that neither the finance committees nor they themselves raised their salaries. "Those who have raised our salaries can also withdraw that raise. Any increment in our salary can be reversed by the government if it wishes," he added. Meanwhile, Senate Chairman Yousaf Raza Gilani on Friday also reportedly distanced himself from the massive hike in the salaries of senior parliamentarians including himself, saying he was not consulted before the raise was approved. A May 29 notification revealed that the Senate chairman and NA speaker's salaries had been raised from Rs205,000 to Rs1.3m, besides 50% of the revised salary (Rs650,000) as the sumptuary allowance. The hike took effect from January 2025.
Express Tribune
31-05-2025
- Business
- Express Tribune
Tax shortfall exceeds Rs1 trillion
The salaried class was the most affected segment that paid a record Rs437 billion in taxes till April, which were 52%, or Rs150 billion, more than last year. photo: FILE Listen to article The shortfall in tax collection widened to an alarmingly high level of Rs1.03 trillion in just 11 months of the current fiscal year despite imposing record new taxes in the budget, taking advances, withdrawing money from people's bank accounts and blocking refunds of companies and individuals. Only in May, the Federal Board of Revenue (FBR) faced a mammoth shortfall of Rs205 billion despite paying 5.3% less refunds compared to last year. The embarrassing outcome brings into question the government's strategy of collecting taxes from the already burdened classes and sectors of the economy. One of the reasons for missing the monthly target by a wide margin is no new recovery of arrears in litigation cases, which both the government and the FBR had promised to recover through expeditious settlement of the cases. The FBR provisionally collected Rs10.21 trillion from July through May of the current fiscal year, falling short of the target by Rs1.03 trillion, according to its statistics. The collection was still around 28%, or Rs2.2 trillion, higher than the previous fiscal year, but not enough to stay on track. The key reasons behind the higher collection compared to last year were the imposition of more taxes in budget, particularly on the salaried class and corporate sector, and expansion of sales tax net to many untaxed areas. Yet the FBR missed the target by Rs1.03 trillion. The FBR did not respond to a request for comment till the filing of the story. The shortfall is far more than what the government committed in talks with the International Monetary Fund (IMF) in March this year, when the lender lowered the target by Rs640 billion for the full fiscal year. In a meeting of the National Assembly Standing Committee on Finance on Thursday, PPP MNA Mirza Ikhtiar Baig said that the FBR illegally recovered money from multiple bank accounts in Karachi to meet its targets. Moreover, Utopia Industry, one of the top 12 exporters, is struggling to get Rs3 billion in refunds, a situation many industries are facing despite official claims of clearing refunds within 72 hours. Details showed that in May the FBR paid Rs2 billion, or 5.3%, less refunds compared to the same month of last year. Total refund payments in 11 months reached hardly Rs458 billion, higher by just 1.1% and not in commensuration with the 28% rise in tax collection. The salaried class was the most affected segment that paid a record Rs437 billion in taxes till April, which were 52%, or Rs150 billion, more than last year. For May, the FBR's tax target was Rs1.1 trillion. However, despite taking advances and slowing refunds, it could collect Rs907 billion. The monthly collection was Rs271 billion, or 43%, more than last year, which a senior FBR official said was commendable in the current circumstances. The IMF forced the country to impose new taxes, primarily burdening the salaried class and levying taxes on nearly all consumable goods, including medical tests, stationery, vegetables and children's milk. For the July-May period, the FBR missed its targets for sales tax, federal excise duty (FED) and customs duty but again exceeded the income tax target on the back of overburdening the salaried class. Income tax collection amounted to Rs4.9 trillion during the first 11 months of the current fiscal year, higher by Rs296 billion from the target. It was also Rs1.1 trillion more than last year. The burden was shared by the salaried class and the corporate sector as retailers and landlords remained under-taxed. Sales tax collection stood at Rs3.5 trillion, a whopping Rs900 billion less than the target of Rs4.4 trillion. Sales tax remained the most difficult area for the FBR and one of the reasons for the low collection was less-than-estimated growth in large industries. The government had immensely increased the sales tax burden in the budget. The collection was Rs755 billion higher than last year. The FBR collected Rs672 billion in FED, which was Rs166 billion less than the target. However, it was Rs180 billion higher than last year. The government did not spare homes, lubricants, fruit juices, cement, sugar, etc from FED in the last budget. Yet it failed to meet the target. Customs duty collection stood at Rs1.16 trillion, below target by Rs265 billion. The collection was hit by lower-than-projected import volumes. It was also marred by the manipulation of goods declaration forms by importers in connivance with the corrupt elements. The amount was Rs172 billion higher than last year.
Express Tribune
05-05-2025
- Business
- Express Tribune
Rs40b Kohistan scam triggers major probe
The Khyber-Pakhtunkhwa government has launched an investigation into a mega corruption scandal in Kohistan district, where an estimated Rs40 billion has allegedly been siphoned off from the provincial treasury. The scandal came under intense scrutiny during a meeting of the Public Accounts Committee (PAC), chaired by Speaker of the K-P Assembly, Babar Saleem Swati. Officials from the Finance Department and the Accountant General's office admitted during the session that billions had been misappropriated from government funds. While an official embezzlement figure of Rs24 billion has been confirmed so far, PAC members expressed dissatisfaction with the explanations provided by Secretary Finance and the Accountant General. The Speaker subsequently ordered a special audit of the case by the Auditor General of Pakistan. In his briefing to the committee, AG Naseeruddin stated that the AG's office is responsible for pre-audit functions, whereas post-audit responsibilities had been delegated to the Finance Department following earlier negotiationsdespite the Constitution assigning that duty to the AG's office. Speaker Swati pressed AG Naseeruddin how such large-scale embezzlement occurred under the department's watch. The AG responded that the issue did not occur solely during his tenure and involved multiple officers over several years. According to preliminary findings, between 2016 and 2024, Rs182 billion was deposited into a specific government account, while Rs205 billion was withdrawnraising serious questions about oversight and accountability. The account in question was reportedly shut down six months ago when irregularities were discovered. "The scale of this corruption cannot be pinned solely on district accounts officers or lower-level clerks," said Speaker Swati, emphasizing that responsibility must also be fixed at senior levels. The Finance Secretary also failed to satisfy the committee with his responses regarding the scandal. In response, Speaker Swati ordered the immediate suspension of all officials involved, including those from the Finance Department, the Communication and Works Department (C&W), and the AG's Office. A formal inquiry has been launched. This development has sent shockwaves through the provincial administration and raised serious concerns about financial oversight in government institutions. Meanwhile, the National Accountability Bureau (NAB) has confiscated official records from several key government departments in relation to the Kohistan mega scandal. The departments involved include the Finance Department of Khyber-Pakhtunkhwa, the District Accounts Office Kohistan, the Communication and Works (C&W) Department, and the Auditor General (AG) Office in Peshawar. As part of its investigation, NAB has also approached relevant banks concerning individuals who withdrew large sums of money from various financial institutions. In the briefing, NAB's Director of Investigations revealed that the inquiry into the Kohistan scandal is still in its early stages. The director confirmed that records from the involved departments have been secured, and any further developments in the investigation will be promptly communicated to the PAC.
