The SECP Financial Settlements Review took center stage during a meeting of the Senate Standing Committee on Finance and Revenue, where members recommended an immediate halt to all financial settlements for outgoing commissioners of the Securities and Exchange Commission of Pakistan (SECP). The directive aims to ensure accountability while the Public Accounts Committee (PAC) prepares to examine pending audit objections related to the regulatory body.
Chaired by Senator Saleem Mandviwalla, the committee meeting raised several regulatory concerns, including a reported payment of Rs. 7 million for an Islamabad Club membership associated with Commissioner Abdul Rehman Warriach. With his term nearing its end, committee members questioned the timing and justification of the payment.
Concerns Over Club Membership Payment
During the discussion, Senator Talha Mahmood expressed his reservations regarding the substantial membership payment. In response, the SECP chairman confirmed that the Commission had indeed paid the amount. However, he clarified that it would be adjusted upon completion of the commissioner’s term. This exchange added momentum to calls for the SECP Financial Settlements Review, reinforcing demands for transparency over benefits awarded to regulators.
The chairman added that the PAC is scheduled to deliberate on the Auditor General’s report concerning SECP’s 17-month retrospective salary increases in December 2025. He recommended freezing all settlements until PAC’s review is complete, noting that any future recovery orders could complicate matters if payments continue unchecked.
Debate Over the Amendment Bill
The committee also examined the Private Member’s Bill titled The Securities and Exchange Commission of Pakistan (Amendment) Bill, 2025,introduced by Senator Anusha Rahman. Her proposal calls for harmonizing procedures governing the determination of salaries and benefits across regulatory bodies, particularly in light of the earlier controversial retrospective salary adjustments flagged by the Auditor General.
Anusha Rahman pointed out that only three of Pakistan’s 19 regulators have the power to determine their compensation independently. She stressed that the current structure leads to inconsistencies and potential governance gaps. Her recommendations included expanding similar procedural oversight to the State Bank of Pakistan to ensure uniformity across the financial regulatory framework.
Committee members largely supported the bill, seeing it as a needed step toward accountability. However, the Finance Secretary opposed it, citing structural and procedural concerns. At the request of the Minister of State for Finance, the bill was temporarily deferred to allow for further consultation. Even so, the conversation strengthened the relevance of the SECP Financial Settlements Review as lawmakers push for stronger checks on regulators’ financial autonomy.
Committee Reviews Duties on Imported Mobile Phones
Beyond the debate on SECP-related matters, the committee turned its attention to duties on imported mobile phones. According to the FBR Chairman, nearly 95 percent of Android smartphones are now assembled locally, while duties primarily apply to the remaining imported devices. The matter is currently under discussion in the National Assembly, with a detailed report to be shared with both the Assembly and the Senate panel.
While not directly linked to the SECP Financial Settlements Review, the discussion underscored the committee’s focus on financial policy reforms and regulatory oversight.
Why the Review Matters
The call for a complete freeze on settlements for outgoing commissioners signals a broader concern about transparency and governance within Pakistan’s regulatory institutions. With the PAC preparing to review audit objections, the SECP Financial Settlements Review could uncover key insights into compensation policies, discretionary payments, and potential misuse of authority.
The reported club membership payment became a focal point of the conversation—not because such benefits are entirely unusual in high-ranking public roles, but due to its timing, lack of clarity, and its link to an outgoing official. Senators argued that such payments should at least be aligned with clear, publicly available policies to avoid any appearance of favoritism or irregular financial practices.
Towards More Transparent Regulatory Governance
As the PAC prepares to evaluate the SECP’s retrospective salary increases and other pending audit matters, political observers note a growing push for regulatory reform. Harmonizing compensation procedures across all regulatory bodies—whether through the proposed amendment bill or executive measures—may strengthen institutional credibility.
The SECP Financial Settlements Review is part of this broader effort. By urging transparency, halting settlements, and reexamining compensation structures, lawmakers aim to build a more accountable framework for Pakistan’s financial regulators.
In light of recent developments, the SECP Financial Settlements Review has become an important focal point in Pakistan’s ongoing discussion about institutional oversight. As the PAC prepares its review and lawmakers push for structural reforms, decisions made in the coming months could shape how regulatory bodies operate, compensate officials, and maintain public trust. For now, all eyes remain on the PAC’s findings and the future of the amendment bill that seeks to bring greater uniformity and transparency across the country’s regulatory landscape.
