Lawmakers demand cabinet control over SECP salaries
Tariq Khattak
ISLAMABAD (August 29):The urgency of debate over regulatory autonomy has been underscored as the Senate Standing Committee on Finance confronted the Securities and Exchange Commission of Pakistan (SECP) over controversial salary and perks increases. The episode, following an exchange between lawmakers and the SECP chairman, has drawn attention to a broader legal vacuum; the unchecked authority of autonomous regulators to decide their own financial privileges.
The committee, chaired by Senator Saleem Mandviwalla, termed the pay hike an abuse of power by the SECP Policy Board and recommended that the Prime Minister and Cabinet should make such decisions. Members also ordered details of salaries and benefits across all state-owned entities for the next sitting. But beyond the immediate reprimand, the hearing exposed a deeper governance challenge that successive governments have failed to address.
Senator Farooq H. Naek questioned how regulators could be allowed to raise their own pay when even Supreme Court judges do not enjoy such discretion. His remarks underscored the constitutional imbalance created when autonomous bodies are given sweeping powers without adequate oversight. Senator Anusha Rehman stated that three major regulators, including the SECP, are currently awarding themselves pay raises without external approval.
The SECP chairman attempted to downplay the controversy, insisting that media reports exaggerated his remuneration. Yet the committee’s scepticism reflected a broader public perception that regulators increasingly act as insulated power centres, serving personal interests rather than the public good.
The controversy comes at a politically sensitive moment. The government is attempting to project fiscal restraint, citing budgetary pressures and IMF commitments, yet regulators appear to operate under different rules. Lawmakers warned that without corrective legislation, independent regulators could become “states within a state,” unaccountable in areas where accountability is most critical.
Criticism was not limited to pay structures. Excessive perks and weak regulatory performance hinted at an emerging consensus that autonomy has too often translated into impunity. The committee also flagged Rs. 267 million in irregularities at SECP, as noted in the Auditor General’s report. While the SECP chairman claimed similar issues had been settled in previous years, Senators remained unconvinced. The Finance Division was directed to submit amendments within one month to rationalise salary-setting powers across regulatory bodies.
The larger question now facing parliament is whether it can strike a balance between giving regulators the independence needed to police markets and imposing enough checks to prevent them from misusing financial privileges. The need for legislative action, as several observers have cautioned, is crucial to prevent further erosion of public trust in regulatory institutions already struggling to prove their credibility.
For now, the Senate’s rebuke has forced the issue into the open. The potential impact of this controversy, whether the government moves swiftly to reform the law or allows the controversy to fade, will determine whether regulators remain answerable to the state or continue to answer only to themselves.
Analysts say the controversy could set a precedent for wider scrutiny of other regulators, including NEPRA and OGRA, where similar questions over salaries and governance have long lingered. If parliament legislates, it could redefine the balance between independence and accountability in the regulatory framework.
Meanwhile, the Committee also reviewed the Virtual Assets Bill and noted progress in CCP’s backlog clearance and penalty recoveries.
