AGP report rejected: SECP claims power to get approvals from policy board

ISLAMABAD: While out rightly rejecting Consolidated Audit Report 2024-25 of the Auditor General of Pakistan, the Securities and Exchange Commission of Pakistan (SECP) has boldly clarified that the SECP has the legal authority, mandate and powers to obtain approval of budgetary and other financial related decisions from SECP Policy Board.

Business Recorder has found that a deliberate malicious campaign has been launched against the SECP authorities from unknown quarters. Apparently, the same type of old questions/objections have been repeated which were already settled and decided by the AGP in the past. The crux of the matter is that there is no illegality in obtaining approval of financial matters from SECP Policy Board comprising Secretaries from the Finance Division, Commerce Division, Law Division, Deputy Governor State Bank of Pakistan, Chairman, SECP as well as 6 eminent private sector experts, appointed by the Federal Government, ensuring robust oversight of all SECP actions.

The Securities and Exchange Commission of Pakistan (SECP) strongly refutes the observations contained in the Consolidated Audit Report 2024-25 of the Auditor General of Pakistan, which allege that revisions in pay and allowances of SECP employees were made unlawfully and without due process. The report also mentions that SECP failed to deposit revenues and surplus balance into Federal Consolidated Fund. All decisions and actions cited above, by the Commission, have been taken strictly in accordance with the SECP Act, 1997, and with the due approval of the competent authority.

SECP introduces ‘Infrastructure Schemes’

The SECP is also dismayed by the imbalanced reporting of the matter in the media, as the objections raised were reported but responses by SECP, mentioned in the report, were not shared, Certain sections also reported that SECP was invited to discuss the matter in Departmental Accounts Committee (DAC) meeting to which no response was given by SECP, which is factually incorrect, as no such invite was received.

The report is currently based on observations only and it will be taken up at the Departmental Accounts Committee (DAC) level, where opinions from both AGP and SECP will be sought before concluding on the matter.

Similar observations were raised by the AGP in the past, which were initially discussed in Departmental Accounts Committee (DAC) and were conclusively settled by the Public Accounts Committee (PAC) in July 2025 in favor of the legal position taken by SECP. It is regrettable that despite the decision, the issue has been raised again without seeking the opinion from Finance or Law Ministry, however, SECP is confident that the matter will be settled at the Departmental Accounts Committee stage, based on the existing precedent. The SECP is a statutory body with administrative, financial, and functional independence, as expressly provided under the SECP Act, 1997 and based upon the International Standards set by organizations such as International Organization for Securities Commissions (IOSCO) for regulators in capital market domain.

Under the SECP Act, 1997 final approval of budgetary and related decisions rests with the SECP Policy Board. This Board comprises Secretaries from the Finance Division, Commerce Division, Law Division, Deputy Governor State Bank of Pakistan, Chairman, SECP as well as 6 eminent private sector experts, appointed by the Federal Government, ensuring robust oversight of all SECP actions.

Given the sensitive and highly technical nature of its mandate, SECP requires professionals of exceptional expertise and integrity. To retain such talent and align with prevailing market practices, the Commission periodically reviews remuneration packages — always with the Policy Board’s approval. The market competitiveness of remuneration is ascertained through market surveys and benchmarked against similar organizations.

The SECP remains committed to transparency and open communication, the SECP added.

Copyright Business Recorder, 2025