Cabinet Approves Amendment to Telecom Law to Revise PTA Officials’ Remuneration

The federal cabinet has approved an amendment to the Pakistan Telecommunication (Re-Organisation) Act, 1996, addressing ambiguity over the pay structure and allowances of the chairman and members of the Pakistan Telecommunication Authority (PTA).

This decision comes in response to objections raised by auditors regarding allowances being paid to PTA officials, which were reportedly inconsistent with existing regulations. The amendment, proposed by the Cabinet Division, aims to authorize the federal government to determine the remuneration of PTA officials, bringing their pay and privileges in line with those of other regulatory bodies.

The chairman of the PTA and its members are presently compensated according to the MP-I and MP-II scales, respectively, along with allowances sanctioned by the Finance Division via office memorandums released in 2007 and 2009. However, auditors discovered anomalies and argued that these officials should get just management pay scale allowances. The Law and Justice Division said that “salary” and “privileges” under Section 3(7) of the Act are separate entities and should not be linked.

The discrepancy resulted in uncertainty, prompting the PTA to seek a modification to Section 3(7) of the Act, aiming to empower the prime minister to set compensation packages for PTA officials.

Comparison with Other Regulatory Authorities

In contrast to the Pakistan Telecommunication (Re-Organisation) Act, various regulatory frameworks that oversee entities like the Oil and Gas Regulatory Authority (OGRA), National Electric Power Regulatory Authority (NEPRA), and Special Technology Zones Authority (STZA) grant the federal government the authority to determine the compensation for their officials.

The Cabinet Division has put forth a recommendation to rectify this imbalance by suggesting that the PTA’s compensation policies be harmonized with those of other regulatory bodies. A draft amendment has been prepared and reviewed by the Ministry of Law, which recommended obtaining approval in principle from the federal government in accordance with the Rules of Business, 1973.

Cabinet Approval and Proposed Changes

The proposed amendments to Section 3(7) of the Act specify that the chairman and members of the PTA will receive compensation as set by the federal government for their terms. This adjustment clarifies earlier uncertainties and guarantees a uniform method for compensation frameworks among regulatory bodies.

The cabinet has given its approval to the proposed changes outlined in a summary named “Amendment in Section 3(7) of the Pakistan Telecommunication (Re-Organisation) Act, 1996,” signaling progress in tackling governance challenges within the PTA.

Implications of the Amendment

The proposed amendment aims to simplify the salary framework for PTA officials, promoting adherence to regulatory standards and tackling audit-related issues. The initiative underscores the administration’s dedication to promoting openness and equality among regulatory agencies, setting the stage for more uniform and responsible governance.

The government seeks to enhance the operational efficiency of the PTA by clarifying the pay structure, thereby removing any possibility of future disputes regarding remuneration and allowances.