A former chief executive of a state-owned enterprise (SOE), who received a staggering Rs355 million in salary and allowances over 32 months, has once again been appointed head of another SOE under the same ministry, according to a report by The News. The publication, however, did not disclose the executive’s name or the organization.
Salary and Benefits Package
The executive is currently drawing a monthly salary of Rs3 million, accompanied by an extensive range of benefits. His package reportedly includes:
- Two company-maintained vehicles with drivers
- A monthly fuel ceiling of 500 litres
- Business-class travel for both domestic and international trips
- Five-star hotel accommodations
- Comprehensive health coverage for his family
- Group life insurance worth Rs10 million
- Paid mobile bills
- A company laptop
- Reimbursement for up to two club memberships
- Personal security, including a bodyguard and two armed guards
Previous Role and Perks
In his earlier appointment in 2022, the executive was hired under Special Professional Pay Scale III with a fixed salary of Rs500,000 per month. However, a series of board-approved allowances and bonuses substantially inflated his earnings.
Over 32 months, his total compensation reached Rs354 million, broken down as follows:
- Fixed bonuses: Rs56.3 million
- Performance bonuses: Rs27.5 million
- Retrospective pay increases: Rs52 million
- Severance and gratuity: Rs46 million
- Foreign travel expenses: nearly Rs59 million
The package also included additional perks such as car monetization and leave encashments.
Political and Public Reaction
Concerns have been raised over the lack of intervention by the ministry and minister overseeing both SOEs. Officials noted that despite earlier media exposure of the issue, no corrective measures were taken.
The matter drew significant attention in Parliament earlier this year when excessive perks granted to the CEO of Pakistan Reinsurance Company were revealed. Senators expressed surprise at the figures, with PPP parliamentary leader Sherry Rehman highlighting the inconsistency between such lavish payouts and the government’s austerity measures.
She pointed out that the CEO had received more than Rs335 million in perks and privileges in less than three years. Finance Minister Muhammad Aurangzeb assured lawmakers that accountability would be ensured and that recovery of funds would be pursued.
Senate Committee’s Response
In a related move, the Senate Standing Committee on Finance and Revenue has proposed changes to curb excessive executive pay at public institutions.
The committee voted to strip the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) boards of their power to independently set salary packages for top executives. Legislators expressed concern over steep pay hikes recently approved at SECP, and noted similar issues at the Pakistan Medical and Dental Council (PMDC).
The committee recommended that the cabinet and prime minister alone should have the authority to approve pay increases. It has directed the Finance Division to draft and present proposed amendments within one month.
Tags:
Subscribe To Get Update Latest Blog Post
No Credit Card Required
