The Auditor General of Pakistan (AGP) has flagged unauthorised salary hikes and allowances at the Securities and Exchange Commission of Pakistan (SECP), identifying irregular payments that total about Rs377.22 million for FY2023-24.
The AGP said the increases were approved in an October 2024 Policy Board meeting without the legally required prior approval from the Finance Division.
Within the total, auditors singled out two heads: Rs156.6 million in basic pay, allowances and other perks, and Rs110.9 million disbursed under a “Rest and Recreation Allowance.” The report terms these payments irregular and lacking legal validity because autonomous bodies are still bound to seek Finance Division clearance for pay decisions.
The audit further noted SECP did not remit nearly Rs14 billion to the Federal Consolidated Fund (FCF), citing retained revenues from fees and levies and a surplus balance that should have gone to the treasury—an issue tied to requirements under the Public Finance Management Act, 2019.
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Auditors referenced Rule 12(1)(h) of the Rules of Business, 1973, a January 23, 2024 Finance Division order mandating prior approval for pay and perks, and a 2016 Supreme Court judgment holding that decisions that bypass the Rules of Business are legally invalid. The AGP recommended halting the payments and either seeking retrospective approval or reversing the increases.
SECP has rejected the observations, arguing that its Policy Board is empowered to approve remuneration and that packages are benchmarked to attract and retain specialist talent; it pledged transparency and cooperation.
The findings add to wider concerns raised by the AGP this year over weak financial controls across federal entities, underscoring calls for tighter oversight and timely remittances to the FCF to protect public funds.
