The Senate Standing Committee on Finance and Revenue on Thursday moved to strip the boards of the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) of their authority to set salaries for top executives, following legislators’ concern over the recent steep pay hikes at SECP.
According to news reports, the committee highlighted the SBP, the SECP, and the Pakistan Medical and Dental Council (PMDC) as examples, noting that these institutions can independently determine remuneration packages under their respective laws.
The meeting, chaired by Senator Saleem Mandviwalla, noted that while these powers were granted in the name of autonomy, they have often resulted in substantial increases in salaries paid from public funds.
Senator Farooq Naik cited the SECP’s irregularities, where salary hikes totaling Rs267 million were reported by the Auditor General of Pakistan. He described such increases as “misuse” of statutory powers.
SECP Chairman Akif Saeed stated that previous irregularities had been addressed, but senators remained critical.
The AGP report revealed that the SECP chairman’s salary for 2023-24 reached Rs41.53 million, with each commissioner receiving Rs35.8 million, including backdated increases. The report also flagged Rs110 million in unauthorised entertainment allowances.
Federal Board of Revenue Chairman Rashid Mehmood Langrial added that some state-owned entities’ boards approved excessive remuneration proposals from their CEOs, often benefiting private board members in return.
The committee recommended that the authority to approve salary increases should rest solely with the cabinet and prime minister and requested the Finance Division to submit proposed amendments within one month.
Members also raised concerns over the Competition Commission of Pakistan’s (CCP) performance in addressing cartelisation in key sectors. The committee was informed that 567 legal cases were pending, with 280 resolved since August 2023, while penalties of Rs43.5 billion on the sugar sector and Rs6.4 billion on cement remain unrecovered due to stay orders.
Senators directed the law secretary to provide legal aid to CCP and planned to invite the Attorney General to the next meeting to expedite court hearings.
