SECP Paid Rs. 1.19 Billion in Backdated Salaries and Benefits to Staff

The Securities and Exchange Commission of Pakistan has come under renewed scrutiny after it emerged that Rs. 1.191 billion was paid out in salaries, perks, privileges, and post-retirement benefits to its top officials and staff over a 16-month period with retrospective effect.

According to official data, the payments were made between July 1, 2023 and October 31, 2024, with the total impact amounting to Rs. 1.191 billion, approved by the SECP Board, reported a national daily.

The issue gained attention after Anusha Rahman raised concerns in parliament, highlighting that as much as Rs. 2,000 billion may have been parked outside the government’s main account system in violation of financial laws.

A detailed breakdown shows that the then chairman and three members received Rs. 65.559 million, while nine executive directors drew Rs. 68.787 million, 16 directors Rs. 87.046 million, and 33 directors Rs. 135.123 million. Similarly, 32 joint directors received Rs. 56.391 million, 58 additional joint directors Rs. 68.541 million, 42 deputy directors Rs. 25.142 million, and 55 assistant directors Rs. 18.296 million.

Other payouts included Rs. 398,481 to three management executives and Rs. 53.839 million to 140 staff and non-management employees. Out of the total amount, Rs. 579.139 million was disbursed as salary arrears and perks, while Rs. 612.054 million was transferred to gratuity, trust, and pension funds, taking the cumulative figure to Rs. 1.191 billion.

The regulator stated that the proposal was approved by its Policy Board under the SECP Act 1997, which it said is the competent authority for such financial decisions. It further clarified that the Rs. 579 million was paid as arrears for 16 months, while the Rs. 612 million allocated to gratuity and pension funds is meant to meet employees’ terminal benefits at retirement or separation.

In response to queries, the SECP said the payouts were based on a salary benchmarking exercise conducted by KPMG, aimed at aligning compensation with market standards.

On whether approvals were sought from the Ministry of Finance or the Prime Minister’s Office, the SECP maintained that its Policy Board has the legal authority to approve such expenditures under the existing framework.

The SECP also said that information is shared with relevant oversight bodies, including parliamentary committees, as required. However, when asked about audit scrutiny, the regulator confirmed that the matter has not yet been taken up at the Departmental Accounts Committee level, although it follows a structured process to address audit observations raised by the Auditor General of Pakistan.