Fiscal malfeasance

Published June 16, 2025

IT is galling that, even in these times of economic distress, when hardship has pushed millions of ordinary Pakistanis close to or below the poverty line, the decision-makers seem to have made their own prosperity a top priority. Take, for example, the recent five-fold increase in the salaries of the Senate chairman and National Assembly Speaker, which comes with an additional 50pc sumptuary allowance, as well as the 188pc increase in the salaries and allowances of cabinet ministers and elected representatives made earlier this year. The former decision has drawn bipartisan criticism in recent days, but can either be justified? While there is an argument to be made for adjusting compensation for inflation, the increments far surpass the accumulated impact of price increases since the last time salaries were revised. It must also be asked why, when the state has been pushing the burden of its poor decision-making onto honest, taxpaying citizens, should parliamentarians not share some of the financial load with ordinary citizens? Why should their incomes and allowances be insulated from the fallout of their own bad policies?

Equally concerning is how cavalier this regime has been in dishing out ‘favours’ from public monies in the form of wage increases, special grants and allowances, as well as various exemptions. For example, salaries and allowances for judges were increased in the outgoing fiscal year by eye-watering amounts, while bar councils were handed special grants as the government ostensibly tried to curry favour with the legal community. Separately, there has been criticism about how media loyalties appear to have been influenced by government advertisements, which are paid for by the public. Likewise, the finance minister recently announced a special relief allowance at 50pc of the basic salary for armed forces officers, and 20pc for junior commissioned officers and soldiers. The government also put off, yet again, the restructuring of defence pensions, which have been consuming a hefty portion of the state’s budget. The investments being made to bolster Pakistan’s defence capabilities cannot be questioned, but increasing non-combat defence expenditures at this time, when the economy is under strain, will invite scrutiny, which the government must address. The public cannot be left feeling that it is the only loser in decisions being made on its behalf.

Published in Dawn, June 16th, 2025

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