Cabinet Amends Telecom Law to Secure PTA Officials’ Pay

The amendment grants sweeping powers to PM office for determining telecommunications officials’ compensation

In a significant development for Pakistan’s telecommunications sector, the federal cabinet has approved an amendment to the Pakistan Telecommunication (Re-Organisation) Act, effectively resolving a long-standing dispute over the payment of allowances to Pakistan Telecommunication Authority (PTA) officials.

The amendment comes in response to audit objections regarding the compensation structure of PTA’s top leadership, particularly concerning allowances being paid to its chairman and members. According to reliable sources within the government, the controversy emerged when auditors questioned the legality of combining Management Pay (MP) scales with additional allowances typically reserved for senior executive grades.

The PTA chairman, who receives compensation under the MP-I scale, and members under MP-II scale, were also drawing allowances applicable to senior executive grades, as previously sanctioned by the Finance Division through official memorandums issued in January 2007 and September 2009. However, this arrangement faced scrutiny when auditors insisted that officials should only receive allowances specifically tied to their MP scales.

The situation was further complicated by conflicting interpretations between the audit authorities and the Law and Justice Division, creating uncertainty about the legitimate compensation package for these positions. To address this administrative predicament, the PTA formally requested a modification to Section 3(7) of the Pakistan Telecommunication (Re-Organisation) Act, 1996, through correspondence dated May 23, 2024.

The approved amendment now empowers the Prime Minister’s office to determine and approve the comprehensive pay package for the PTA chairman and members, effectively streamlining the compensation process and eliminating any ambiguity regarding allowances.

This legislative change is expected to strengthen the regulatory framework of Pakistan’s telecommunications sector by ensuring transparent and unambiguous compensation structures for its top officials. The amendment also reflects the government’s commitment to addressing administrative challenges that could impact the effective functioning of key regulatory bodies.

Industry experts believe this clarification in the compensation framework will help attract and retain top talent in leadership positions at the PTA, ultimately contributing to better regulation and development of Pakistan’s rapidly evolving telecommunications sector.