Pakistan’s Senate Standing Committee on Finance has approved an amendment to the Securities and Exchange Commission of Pakistan (SECP) Act 1997 that will allow members of parliament to become part of the regulator’s Policy Board. The move introduces direct parliamentary representation within the policy-making structure of the country’s capital market regulator and increases the number of government-nominated members on the board.
According to details reported by Dawn, the amendment was proposed by Senator Anusha Rehman during the committee’s meeting. The change adds two parliamentarians—one member of the National Assembly and one senator—to the SECP Policy Board. With this addition, the number of government-nominated members on the board will increase from four to six.
The proposal was discussed during a meeting of the Senate finance committee chaired by Senator Saleem Mandviwalla. During the session, Senator Rehman raised concerns about decisions taken by the previous SECP policy board, particularly regarding salary increases and additional benefits granted to officers of the regulatory body.
Rehman pointed to what she described as a sharp increase in salaries and perks for SECP officials under the previous management. She also stated that arrears were reportedly paid as part of the compensation adjustments. Addressing Finance Minister Muhammad Aurangzeb during the meeting, she questioned the justification behind these payments and asked how such increases were approved.
According to the senator, the salary and benefits adjustments appeared to coincide with higher fees and charges imposed by the SECP. She suggested that the increase in regulatory fees may have been linked to the higher compensation packages granted to officials within the commission.
The committee meeting also included discussions about the performance and actions of the SECP’s previous leadership. Senators directed several questions toward the commission’s current chairman, Dr Kabir Ahmed Sidhu, regarding decisions attributed to the former management.
Members of the committee expressed dissatisfaction with the response from the SECP chairman, stating that the commission had not provided information requested by the panel. One of the key issues raised during the meeting involved details about foreign visits undertaken by SECP officials during a period when restrictions were reportedly in place.
Committee members stated that they had requested documentation regarding these visits, but the requested information had not been submitted. The senators stressed that transparency regarding official travel and institutional expenses was necessary for effective oversight of regulatory bodies.
During the discussion, members of the committee also called upon the SECP chairman to pursue the recovery of funds from former senior officials. Among those referenced was former SECP chairman Akif Saeed, along with other officials whom the committee said had received significant financial benefits during their tenure.
The lawmakers argued that if irregularities were identified in compensation or financial benefits, steps should be taken to recover the funds and ensure accountability within the institution.
While several other proposed amendments to the SECP Act were expected to be discussed during the meeting, they were not taken up by the committee. Despite objections from Finance Minister Muhammad Aurangzeb, the panel proceeded to approve the amendment that allows parliamentary members to join the SECP Policy Board.
Senator Rehman defended the proposal by stating that regulatory institutions such as the State Bank of Pakistan and the SECP have compensation structures that stand out compared to other public sector organizations. She argued that including members of parliament in the policy board would strengthen oversight and improve accountability in decision-making processes.
The amendment reflects a broader debate within Pakistan’s financial governance framework regarding transparency, regulatory independence, and parliamentary oversight of institutions responsible for overseeing financial markets and corporate regulation. The inclusion of lawmakers on the SECP Policy Board is expected to increase direct political oversight of regulatory policy decisions once the legislative process is completed.
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