Senate Finance Committee Probes Rs. 260M SECP Salaries

The Senate Standing Committee on Finance has raised serious concerns over the Rs. 260 million salary and perks paid to employees of the Securities and Exchange Commission of Pakistan (SECP), demanding a comprehensive audit and greater transparency in the regulator’s financial management.

The committee, chaired by Senator Saleem Mandviwalla, expressed dissatisfaction with SECP’s expenditure practices, questioning whether such high salary packages were justified in light of the organization’s performance and regulatory oversight.

During the committee meeting, senators pointed out that the SECP’s annual payroll, including bonuses and allowances, had exceeded Rs. 260 million, raising alarms over budget utilization and resource allocation.

Key observations included:

• Salaries and allowances have seen significant increases in recent years.

• Some senior SECP officials reportedly earn above-market packages.

• There is a lack of clear linkage between employee compensation and organizational performance.

• Concerns were raised over the burden on taxpayers if such high payouts continue.

The committee stressed that public institutions must ensure fiscal discipline and efficient resource management.

Responding to the criticism, SECP officials defended the current compensation framework, arguing that the regulator needs to attract and retain top talent in the financial and corporate regulatory sector.

An SECP spokesperson stated:

“Our salary structure is aligned with market standards to ensure we can hire highly qualified professionals capable of overseeing Pakistan’s corporate governance and capital markets effectively.”

However, committee members countered that merit-based justifications must be backed by performance metrics and transparent reporting.

Several senators emphasized the need for a performance-driven compensation model at SECP. They proposed:

• Linking salary increments to regulatory achievements

• Conducting an independent audit of SECP’s financials

• Publishing an annual transparency report

• Aligning SECP salaries with other public-sector regulatory bodies

These steps, senators argued, would help restore public trust and ensure responsible financial governance.

The SECP plays a critical role in supervising Pakistan’s corporate sector, stock markets, and financial reporting mechanisms. Any perception of mismanagement or excessive spending could affect investor confidence and market stability.

Experts warn that without clear accountability measures, Pakistan’s regulatory ecosystem may face credibility challenges, potentially impacting both foreign investments and economic reforms.

The Senate Finance Committee’s scrutiny of Rs. 260 million in SECP salary payments highlights the growing demand for transparency in Pakistan’s regulatory authorities.

While the SECP argues that competitive salaries are essential to attract talent, lawmakers insist on performance-based pay and financial accountability.

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