- Senators demand amendments to laws allowing top officials to set their own salaries; urge govt to regain the power to set top officials salaries
ISLAMABAD: The Senate Standing Committee on Finance, chaired by Saleem Mandviwalla, has called for the abolition of ‘conflict of interest’ clauses in the laws governing the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP), which allow the top officials of these bodies to set their own salaries and benefits.
According to media reports, the committee has summoned the Secretary of the Ministry of Finance and the Governor of the State Bank of Pakistan (SBP) to provide details on the salary packages of the SBP Governor and Deputy Governor during its next meeting.
This move comes after concerns were raised regarding the SBP Amendment Act of 2022, which grants the central bank’s board of directors, led by the governor, the authority to determine the salaries of the governor and deputy governor.
Senator Anusha Rehman raised the issue during a committee meeting on Wednesday, highlighting that this arrangement undermines the government’s authority and creates a conflict of interest.
She called for the government to regain the power to set these salaries, a privilege that was previously held by the President based on the Prime Minister’s recommendation. Rehman also noted that she had already moved amendments to the SECP law and urged the government to do the same for the SBP law.
Senators also raised concerns about the high benefits provided to the SECP chairman, which had come under scrutiny after an audit revealed that his benefits amounted to Rs381 million. The committee questioned whether the Ministry of Finance had intervened, considering the secretary of finance is a member of the SECP board.
Senator Mohsin Aziz emphasized that the issue required further investigation, particularly regarding the misuse of powers. However, he also cautioned against public discussions that could damage the reputation of these key institutions.
In response, Ministry of Finance officials distanced themselves from the issue, clarifying that although the Secretary of Finance is a member of the SBP Board of Directors, the Ministry of Finance is not directly involved in setting these salaries.
The ministry explained that the SBP board sets the remuneration and terms for the governor and deputy governors as per the SBP law, with the salary deemed competitive within the financial sector.
The committee was informed that a salary of Rs4 million for the SBP governor was approved by the board in October 2023.
