In a significant disclosure to the Senate of Pakistan, the Pakistan Telecommunication Company Limited (PTCL) has clarified that government-appointed members serving on the company’s Board of Directors are entitled to a maximum annual remuneration of Rs. 1 million. This information was provided by Shaza Fatima Khawaja, the Minister of State for IT and Telecommunication, in response to a formal query concerning the salaries and allowances of board members.
The Minister’s statement outlined that these remuneration caps are part of the guidelines issued by the Finance Division on July 10, 2024. According to these instructions, any annual compensation exceeding Rs. 1 million must be deposited into the government’s bank account. The policy is designed to maintain fiscal discipline and ensure that public funds are managed with transparency and accountability. Additionally, officers are required to keep comprehensive records of these deposits and regularly report them to their department’s administrative branch to confirm adherence to the rules.
Shaza Fatima Khawaja also shed light on the composition and governance structure of PTCL’s Board of Directors, emphasizing the role of the government and its strategic partner, Etisalat International Pakistan. The board consists of nine directors, with five nominated by Etisalat and four, including the chairman, appointed by the federal government. This arrangement is dictated by the shareholder agreement between the Government of Pakistan and Etisalat, which was established when Etisalat acquired a 26% stake in PTCL in 2005.
The shareholder agreement grants both parties certain powers in overseeing the management and strategic direction of PTCL, one of the country’s largest telecommunications companies. The federal government’s role in appointing directors aims to safeguard the public interest and protect the government’s ownership share, ensuring that PTCL operates with integrity and efficiency.
The minister underscored that the compensation policies for government-appointed directors are designed to uphold transparency and accountability. These measures are intended to prevent potential conflicts of interest and promote trust in the leadership of PTCL. By capping the annual pay of directors at Rs. 1 million, the government aims to balance the need for fair compensation with prudent management of public resources.
The guidelines also stipulate that any director receiving compensation beyond the prescribed limit must ensure the excess amount is deposited into the government’s treasury. This requirement reinforces the principle that public servants must prioritize national interest over personal financial gain. Detailed documentation and periodic reporting are mandated to ensure compliance and deter any deviations from the rules.
The broader context of this policy reflects the government’s ongoing efforts to enhance governance standards in state-affiliated enterprises. As one of Pakistan’s key telecommunications providers, PTCL’s board policies are closely monitored, given the strategic importance of the company to national infrastructure and digital connectivity. The transparency measures aim to build public confidence in the operations of PTCL and ensure that the company’s leadership remains accountable to both the government and the citizens.
The issue of director compensation and governance standards has been a recurring topic in public sector enterprises, where concerns over excessive remuneration and lack of transparency have sometimes undermined public trust. The government’s recent measures, including the salary cap for PTCL board members, signal a commitment to addressing these concerns and promoting responsible governance practices.
In conclusion, the disclosure to the Senate reaffirms the government’s stance on maintaining financial discipline and transparency within PTCL’s management. By enforcing strict compensation limits and ensuring compliance through rigorous documentation and reporting, the government aims to protect public assets and uphold confidence in the leadership of state-affiliated enterprises. This move is part of a broader strategy to enhance governance, accountability, and efficiency in Pakistan’s key industries, particularly within the telecommunications sector, which plays a crucial role in the country’s digital future.
