The Securities and Exchange Commission of Pakistan (SECP) has come under renewed scrutiny after disclosures revealed that more than Rs1.19 billion was paid in salaries, perks, privileges, and post-retirement benefits to senior officials and staff over a 16-month period, with retrospective effect.
According to official records, the payments were made between July 1, 2023, and October 31, 2024, following approval by the SECP’s Policy Board. The figures were reported by a national daily and have since drawn attention in parliament and policy circles.
Parliamentary Concerns Trigger Debate
The issue gained prominence after Anusha Rahman raised concerns in parliament, drawing attention to broader financial governance issues. She warned that as much as Rs2,000 billion may be parked outside the government’s main account system, allegedly in violation of public finance regulations.
Her remarks intensified scrutiny of autonomous regulators and their financial decision-making authority.
Breakdown of Payments
A detailed breakdown of the disbursements shows that:
- The former SECP chairman and three members collectively received Rs65.559 million
- Nine executive directors were paid Rs68.787 million
- Sixteen directors received Rs87.046 million
- Thirty-three directors were paid Rs135.123 million
In addition, 32 joint directors received Rs56.391 million, 58 additional joint directors Rs68.541 million, 42 deputy directors Rs25.142 million, and 55 assistant directors Rs18.296 million.
Other payments included Rs398,481 to three management executives and Rs53.839 million to 140 staff and non-management employees.
Salary Arrears and Pension Funds
Out of the total Rs1.191 billion:
- Rs579.139 million was paid as salary arrears and associated perks for the 16-month period
- Rs612.054 million was transferred to gratuity, trust, and pension funds
The SECP stated that the latter amount is intended to meet employees’ terminal benefits at the time of retirement or separation.
Regulator Defends Decision
In its response, the SECP said the payments were approved under the SECP Act, 1997, which empowers its policy board to make such financial decisions without requiring clearance from the Ministry of Finance or the Prime Minister’s Office.
The regulator also clarified that the compensation adjustments were based on a salary benchmarking exercise conducted by KPMG, aimed at aligning SECP remuneration with market standards.
Audit and Oversight Status
Regarding oversight, the SECP said it regularly shares relevant information with parliamentary committees and other supervisory bodies as required. However, it confirmed that the issue has not yet been examined by the Departmental Accounts Committee.
The regulator added that it follows established procedures to respond to audit observations raised by the Auditor General of Pakistan.
Wider Governance Questions
The episode has reignited debate over compensation practices within autonomous regulators in Pakistan, particularly at a time of fiscal stress and public calls for tighter control over state spending.
Observers say the controversy underscores the need for clearer accountability frameworks to balance institutional independence with transparency in the use of public funds.
