The Auditor General of Pakistan (AGP) has flagged unauthorised payments worth Rs267 million made by the Securities and Exchange Commission of Pakistan (SECP) to its chairman, commissioners, and staff without mandatory approval from the Finance Division.
According to the 2023-24 audit, Rs156.6 million was disbursed in salaries, allowances, and perks, while an additional Rs110.9 million was paid under a “Rest and Recreation Allowance.” The AGP termed these payments irregular and without legal backing, citing violations of the Rules of Business, 1973, and a 2016 Supreme Court ruling.
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The Finance Division had earlier directed that all pay, perks, and revisions in autonomous and semi-autonomous bodies require prior approval. However, SECP argued that under Section 5 of the SECP Act, 1997, its policy board determines remuneration for top officials, making it independent of the Finance Division’s directives.
Rejecting SECP’s stance, the AGP insisted the regulator’s autonomous status does not exempt it from government rules and called for halting such payments immediately. It also recommended submitting the pay structure to the Finance Division for retrospective approval to regularise the expenditures.
The audit further revealed that SECP failed to attend Departmental Accounts Committee meetings held in January and February 2025 to address the matter. The findings have raised questions about governance and financial discipline at Pakistan’s top corporate watchdog.
