On Wednesday, 30th August 2023, Pakistani media reported that Pakistan‘s president Dr Arif Alvi is seeking an increase in his salary. Pakistan’s president has officially requested two salary increases: the first to be effective from July 1st, 2021, and the second to take effect from July 1st, 2023.
Currently, Pakistan’s President, Dr Arif Alvi, receives a monthly salary of PKR 846,550. He is seeking a two-stage increment, with the first step raising his salary to Rs 1,024,325 per month starting from July 2021, and the second step increasing it further to Rs 1,229,190 per month starting from July 2023.
In August 2023, a letter was sent by the President’s Secretariat to the Secretary Cabinet through the President’s Military Secretary. The letter expressed the President’s intent for a modification to be made to the Fourth Schedule of the President’s Salary Allowances and Privileges (Amendment) Act, 2018. This proposed amendment is regarding the increase in the president’s salary.
The letter said, “In Pursuance of para 3(2) of President’s Salary, Allowances and Privileges (Amendment) Act 2018, published in the Gazette Notification (Part I), the remuneration of the President shall be a symbolic one rupee higher than the salary of any holder of Public Office in relation to affairs of the Federation. Accordingly, the pay of the honorable President was fixed @ Rs846,550/- per month in 2018 as reflected in the Fourth Schedule of the Act ibid.”
It added, “It is highlighted that the salary of the Chief Justice of Pakistan being a holder of Public Office was increased twice in the last 2 years through Presidential Orders. Pay of Chief Justice of Pakistan was fixed @ Rs1,024,324/ per month w.e.f 01 July 2021 and subsequently @ Rs 1,229,189/ per month w.e.f. 01 July 2023. Salary of the President was not enhanced in relation to the laid down principle of one rupee higher than the salary of any holder of public office i.e. Chief Justice of Pakistan.”
Upon receiving the case, the Cabinet Division forwarded it to the Law Ministry. Subsequently, on August 18, the Law Ministry recommended to the Cabinet Division that the process for increasing President Alvi’s salary be pursued.
The Law Ministry of Pakistan said, “The Federal Government by virtue of section 3(2) of the same Act has the power to amend that Schedule by way of a notification in the official gazette henceforth in relation to the issue at hand the Federal Government is competent to amend the Fourth Schedule by way of gazette notification and no amendment in the Fourth Schedule is required via an amending Act to effectuate a revision in the salary of the President.”
Additionally, the Finance Division was consulted regarding the matter, and on August 22, it also voiced its endorsement for the suggested salary augmentation for the president, to be achieved by amending the Fourth Schedule of the President (Salary, Allowances & Privileges) Act, 1975.
The issue is anticipated to be brought before the cabinet for its approval. In addition to securing the sought-after raises, the president is also set to receive a substantial sum in arrears, as the two-stage salary increments are set to be retroactively applied from July 2021 and July 2023, respectively.
Pakistan’s President seeking a salary rise when the country is seeing its economy hit a historic low is an interesting scenario. Recently Pakistan witnessed widespread public outrage against the rise in the electricity tariffs. This increase was agreed with the International Monetary Fund for a $3 billion bailout. In several cities across Pakistan, citizens have hit the streets to call for respite from the recent surge in electricity prices. This outcry comes in the wake of grappling with unprecedented inflation rates, ranking as the highest in Asia.
In response to widespread protests, Interim Prime Minister Anwaar-ul-Haq Kakar directed government officials to devise strategies aimed at lowering power bills. The Prime Minister’s Office issued a statement on Sunday, August 27 evening, indicating Kakar’s instructions. During a meeting convened following the protests, Kakar reassured that the government would exercise caution and avoid making hasty decisions that could negatively impact the nation.
On Wednesday, 30th August 2023, Pakistan’s interim Finance Minister Shamshad Akhtar said that the country’s financial condition was worse than anticipated and the government did not have fiscal space to provide subsidies. She made this statement during the meeting of the Senate’s standing committee on Finance on Wednesday. She asserted that the interim government in Pakistan had inherited the IMF program and thus it was non-negotiable.
It’s noteworthy that Pakistan’s decision to unexpectedly freeze fuel prices last year led to the suspension of a loan program with the IMF.
