President Asif Ali Zardari has issued ordinances introducing sweeping changes to federal laws, including a significant hike in the salaries of federal ministers and state ministers, and expanded powers for the Federal Board of Revenue (FBR) and the Capital Development Authority (CDA).
Over 140% salary increase for ministers
Under an ordinance amending the Salary, Benefits and Privileges Act, 1975, the monthly salary of federal ministers has been raised from Rs218,000 to Rs519,000 -- a staggering increase of over 140%.
The new salary structure, which also applies to ministers of state, will be effective retroactively from January 1, 2025. According to the ordinance, the salaries of federal ministers and ministers of state will now be equivalent to those of members of parliament.
FBR granted sweeping powers
In another major move, President Zardari signed an ordinance to transform the Federal Board of Revenue (FBR) into a "fully empowered supervisor." The ordinance gives the FBR broad powers to freeze bank accounts, monitor business premises, and confiscate property.
Key provisions include:
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Deployment of FBR officers at commercial and industrial sites to monitor production and inventory.
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Authorization for FBR to enlist other federal and provincial bodies for enforcement.
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Taxes will be considered immediately payable following a High Court or Supreme Court decision.
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Unannounced bank account withdrawals by the FBR are now legally permitted under the new framework.
CDA ordinance amended
Additionally, a separate ordinance has introduced major amendments to the CDA Ordinance, 1960, aimed at improving compensation mechanisms for land and property owners affected by government development projects.
Key changes include:
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Affected individuals can now receive compensation in cash, alternate land, or other forms.
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Separate awards will be issued for land and built-up properties.
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Affected parties are entitled to 8% annual compensation for any delay in payment.
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Alternative land must be equal in value, accessibility, and utility.
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A special compensation mechanism for minors and special persons has been introduced.
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Temporary use of agricultural land will also be compensated fairly.
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Pending rehabilitation cases will be addressed under the current policy framework.
