The Senate Standing Committee on Finance has moved to remove the legal authority of the State Bank of Pakistan (SBP) board and the Securities and Exchange Commission of Pakistan (SECP) board to set pay for their chief executives. The decision follows public and parliamentary alarm at reported salary hikes at the SECP that pushed the chairman’s pay to more than Rs41 million last year.
The committee acted after a briefing from SECP Chairman Akif Saeed. Law and Justice Secretary Raja Naeem Akbar supported the panel’s view that the SBP Act and the SECP Act must be amended so that boards cannot unilaterally fix executive salaries. The committee is chaired by Senator Saleem Mandviwalla, and the motion to amend the laws won unanimous backing after a recommendation from Senator Anusha Rahman.
Committee members noted that of 18 regulators, only three had salaries fixed by their board, while the remaining 15 saw pay approved by the federal cabinet. The Auditor General’s report that surfaced this month added urgency. The audit found that pay increases approved at an SECP Policy Board meeting held on October 17, 2024, were effective from July 1, 2023, and that the agency had not obtained finance ministry approval as required by law.
The audit recorded that SECP Chairman Akif Saeed’s total pay for fiscal year 2024 reached Rs41.53 million. Each commissioner was reported to receive Rs35.8 million after backdated increases. The report also said that Rs110 million in entertainment allowances were distributed without proper authority.
The Public Accounts Committee had earlier expressed shock and questioned how such packages were possible in a tight fiscal environment. The SECP defended the board’s action and said it relied on market surveys in reaching compensation decisions.
The law secretary told the Senate panel that statutory changes will be drafted and presented to withdraw the board’s power to fix salaries. Parliament will now consider amendments to place executive pay decisions under clearer public oversight and approval.