ISLAMABAD, August 27 : The Public Accounts Committee (PAC) has raised fresh queries regarding executive compensation practices within a key financial regulator, following audit disclosures that highlighted significant allowances and salary enhancements.
PAC members, in a bid to ensure transparency, expressed concern over a reported annual package of Rs41 million for the regulator’s chief executive. They urged the Finance Division to review and validate all such approvals retroactively. The committee emphasized that in times of economic constraint, public institutions must demonstrate restraint and transparency in financial matters.
Audit findings for FY 2023–24 revealed over Rs 267 million in payments categorized as perks and recreational allowances. These were reportedly sanctioned by the regulator’s Policy Board but lacked formal clearance from the Finance Division, as required under existing financial rules.
While acknowledging the regulator’s statutory autonomy, PAC members stressed that financial independence must operate within the broader framework of public accountability. “Autonomous status does not exempt institutions from fiscal discipline,” one member noted.
PAC Chairman Junaid Akbar Khan directed that all regulatory bodies submit detailed records of executive compensation, emphasizing the need for uniform standards across autonomous institutions. “We must ensure that public service remains aligned with merit and fiscal responsibility,” he said.
The committee also recommended a proactive approach, suggesting a comparative review of compensation structures across similar entities. This, the PAC believes, could help strike a balance between operational autonomy and public expectations.
Regulator maintains that all disbursements were made in accordance with internal approvals and statutory provisions. However, PAC, in its commitment to thorough review, has asked for a formal response to reconcile audit observations with existing financial protocols.
