The Securities and Exchange Commission of Pakistan (SECP) has come under intense scrutiny following its approval of a Rs. 7 million payment to cover the Islamabad Club membership of outgoing Commissioner Abdul Rehman Warraich. The decision, taken at a recent commission meeting chaired by SECP Chairman Akif Saeed, has ignited criticism over extravagant expenditures and perceived misuse of public funds within the regulator.
Commissioner Warraich is set to complete his three-year term in the second week of next month, coinciding with the expiration of terms for both the SECP chairman and another commissioner, Lodhi, in early December 2025. While the Islamabad Club membership is a private entitlement, valid for life and transferable to legal heirs, the payment being made from government funds has raised serious questions about accountability and fiscal prudence.
The Rs. 7 million membership fee reflects a recent increase by the Islamabad Club, yet the timing of the approval comes amidst strict austerity measures imposed by the federal government across all departments. Critics argue that an institution tasked with enforcing corporate governance and financial discipline should exemplify transparency, rather than approve such lavish perks for its senior leadership.
Senior officials within the financial regulatory ecosystem have highlighted that the SECP chairman receives a monthly remuneration of approximately Rs. 5 million, with commissioners drawing additional salaries and allowances running into millions. Benefits extended to senior officials also include personal security guards, dedicated drivers, new Honda Civic cars valued around Rs. 9 million, and substantial annual bonuses.
Furthermore, foreign travel by SECP officials has surged in recent months, with delegations reportedly visiting Dubai, London, Singapore, and Colombo for conferences that could have been attended virtually. These trips, often coupled with dollar-denominated daily allowances and five-star hotel stays, have added millions to the regulator’s expenses, raising concerns over the justification and necessity of such expenditures.
Internal sources stress that these perks and privileges stand in stark contrast to the austerity directives issued to other government departments, drawing criticism that the regulator is violating the very principles of transparency and accountability it enforces in the corporate sector. The approval of a lifetime club membership for an outgoing commissioner has intensified public and institutional scrutiny over how public funds are allocated.
In response, the SECP defended the decision, stating that all benefits and entitlements provided to the commissioner are consistent with the compensation and benefits framework established for senior leadership. The regulator clarified that pay, perks, and entitlements are governed by the SECP Act, 1997, and the Commission’s Human Resources Policy, both approved by the Commission and the Policy Board, and argued that these provisions are in line with organizational governance standards.
Despite the official response, the controversy surrounding the Rs. 7 million payment underscores broader concerns about accountability in Pakistan’s financial regulatory bodies. Observers note that the SECP, as the country’s top watchdog for corporate governance, faces heightened expectations to exemplify fiscal discipline and transparency, making the decision to approve such perks increasingly contentious.
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