Pakistan’s power sector is grappling with challenges such as administrative and governance issues, consumer complaints, and high electricity prices. Despite these difficulties, NEPRA has approved salary increases for employees of the Central Power Purchasing Agency (CPPA-G). At the same time, the regulator has cut various unnecessary expenses, thereby avoiding the imposition of additional financial burdens on electricity consumers. This latest decision has garnered significant attention for striking a balance between employee interests and cost-cutting measures.
NEPRA Approves 10.49% Salary Increase
According to NEPRA’s decision for the 2025-26 fiscal year, CPPA-G employees will receive a total salary increase of 10.49%.
The approved increase includes:
4.49% inflation adjustment and 6% performance-based increment. This decision aims to help employees manage the rising cost of living while rewarding good performance at work.
Budget Approved for Salaries and Employee Benefits
NEPRA approved Rs 1.58 billion for employee salaries. In addition, Rs 249 million was approved for employee perks and privileges. However, the regulator did not accept all of CPPA-G’s financial requests. The company had asked for Rs 199 million in employee bonuses. NEPRA significantly reduced this amount and approved only Rs 55.6 million for bonus payments.
Recruitment and Administrative Costs Reduced
The regulator also reviewed CPPA-G’s hiring plans and decided not to approve all proposed new recruitments. Only part of the recruitment plan received approval.
In another important decision, NEPRA reduced the company’s administrative expenses.
Requested administrative budget: Rs 316 million
Approved administrative budget: Rs 271.1 million
These cuts reflect the regulator’s effort to control unnecessary spending.
NEPRA Focuses on Consumer Relief
NEPRA stated that Pakistan’s electricity consumers are already facing financial pressure due to the ongoing power crisis. Because of this situation, the authority believes that unnecessary expenses should not increase the burden on the public. The regulator emphasized that every financial decision should protect consumer interests while allowing essential operations to continue.
The NEPRA approves CPPA-G salary increase decision brings mixed outcomes. Employees will receive a 10.49% pay raise, but bonuses, recruitment plans, and administrative expenses have been reduced. The move shows that NEPRA is trying to support employees while keeping unnecessary costs under control. As Pakistan’s power sector continues to face major challenges, efficient spending and responsible financial management will remain important for protecting electricity consumers.