SECP & SBP: Senate Panel Moves to Limit Salary-Setting Powers
- The Senate Standing Committee on Finance and Revenues, headed by Senator Saleem Mandviwalla (PPP), has endorsed amendments to the State Bank of Pakistan Act and the SECP Act. These amendments will strip the autonomy of these regulators’ boards to fix executive salaries, mandating that any such decisions now receive approvals from the federal cabinet and the Prime Minister’s Office. The Ministry of Law and Justice Secretary, Raja Naeem Akbar, backed the move and assured the committee that amendments will be drafted accordingly.
- The committee took this action following widespread shock over large, retrospective salary hikes at SECP. SECP Chairman Akif Saeed was summoned to explain these unauthorized increases.
- Legislators learned SECP’s board approved salary increases on October 17, 2024, effective from July 1, 2023, without prior approval from the Ministry of Finance—a violation of governance norms.
- According to an audit report by the Auditor General of Pakistan (AGP), SECP chairman’s salary for FY 2023-24 ballooned to Rs 41.53 million, while each commissioner received Rs 35.8 million, all backdated. Additionally, Rs 110 million had been illegally distributed as entertainment allowances.
- The audit emphasized that SECP must either get formal approval from the finance ministry for such increases or reverse them.
- This move comes within a broader pattern: another regulator, NEPRA, similarly self-approved large salary hikes without cabinet approval.
NEPRA: Unauthorized Pay Raises Spark Controversy
- News outlets and government sources confirm NEPRA officials, including its chairman and members, approved salary hikes of up to three–four times, without federal or cabinet clearance—violating Section 8 of the NEPRA Act, which mandates government approval for such decisions.
- The NEPRA chairperson’s monthly gross salary surged to approximately Rs 3.25 million; members reached around Rs 2.95 million, up from a previous range of Rs 800,000–1 million. These increases included “regulatory allowances” modeled after judicial perks, multiple years of ad hoc reliefs, rent, utilities, and other payments.
- The Cabinet Division issued a show-cause notice to NEPRA for these unauthorized actions. The regulator was summoned to explain its conduct before a Senate Standing Committee chaired by Senator Rana Mahmood-ul-Hassan.
- Following public backlash over leaked salary details, NEPRA tightened internal documentation access and imposed restrictions on meeting minutes and working papers to limit further leaks.
Source: The Express Tribune
