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       ？ Senate panel takes exception to SECP, SBP, PMDC’s ‘self-serving’ powers; Finance Division told to submit amendments within one month

       ？ CCP criticised for failure to address cartelisation in sugar, cement sectors

       ISLAMABAD: The Senate Standing Committee on Finance and Revenue on Thursday asked the government to rationalise the self-serving powers of the regulators under which they set their own lucrative salaries and remunerations in the name of independence.

       They particularly named the State Bank of Pakistan (SBP), the Securities and Ex--change Commission of Pakistan (SECP) and the Pakistan Medical and Dental Co--uncil (PMDC), given powers under their respective acts of law to set remuneration packages on their own and without the approval of the federal government. The meeting of the committee was presided over by Senator Saleem Mandviwalla.

       The parliament had allowed these powers to the SBP under an act of law to comply with the instructions of the International Monetary Fund (IMF) to ensure complete autonomy to the central bank from the Ministry of Finance.

       Almost all the senators were of the view that only these three regulators out of 18-20 had the self-serving powers, perhaps wrongly granted under the law in the name of their autonomy, to fix their own perks and privileges on top of heavy salaries on their own or through their boards.

       One of the members pointed out that their salaries and remunerations were paid out of public money and even if they generated fees or charges etc, those monies should directly go to the federal consolidated fund.

       “There are mind-boggling increases in salaries,” said Senator Farooq Naik. He agreed that the laws empowered these institutions to fix their salaries, but multiple times, such an increase was “misuse” of these powers. “You have the power under the statute, but such an increase in salary is absolute misuse,” he said, referring to SECP Chairman Akif Saeed while reviewing the Rs267m worth of irregularities highlighted by the Auditor General of Pakistan in SECP.

       Mr Saeed said similar irregularities had been raised in previous years, which were later settled after a comprehensive response from the SECP. Senators, however, were unimpressed.

       During discussions, Federal Board of Revenue Chairman Rashid Mehmood Langrial reported that in certain cases, the CEOs of various state-owned entities proposed heavy remuneration to their respective boards with a majority of private members who approved those packages and then got ‘compensated’ in return.

       The AGP had pointed out that SECP had made an unauthorised increase in salary packages for its chairman and commissioners, amounting to over Rs156 million annually. It said the law required the SECP to obtain approval from the Ministry of Finance for salary hikes. However, the SECP management proceeded with a pay raise for its employees during a Policy Board meeting on Oct 17, 2024, with effect from July 1, 2023.

       It said the salary package of SECP Cha-irman Akif Saeed reached Rs41.53m for the fiscal year 2023-24, while each commissioner received Rs35.8m due to the backdated salary increases. Addi-tio-nally, the report revealed that SECP illegally distributed Rs110m for entertainment allowances to its commissioners and staff.

       At the end of the meeting, an official statement said the committee raised eyebrows over the regulatory bodies’ powers to increase their salaries. The committee called for rationalisation of such powers and stated that the power to increase salaries should reside only with the cabinet and the PM. The committee recommended that the Finance Division submit amendments within one month for rationalisation of such powers vested in regulatory bodies.

       Senators also expressed dissatisfaction over the performance of the Competition Commission of Pakistan (CCP) in addressing cartelisation in major sectors, including sugar, cement, fertilisers. The CCP reported a backlog of around 567 legal disputes pending for several years, of which 280 cases had been resolved since August 2023 and Rs412 million in penalties in the last two years.

       Moreover, Rs43.5bn penalties had been imposed on the sugar industry and Rs6.4bn on the cement industry, which have not been recovered due to existing stay orders obtained by the relevant industry.

       The committee directed the law secretary to provide legal aid to the CCP and also decided to invite the Attorney General for Pakistan to the upcoming meeting to get expedited hearings of such cases in courts.

       Published in Dawn, August 29th, 2025