Finance Division and regulator silent amid audit scrutiny
Tariq Khattak
ISLAMABAD: The Finance Division has reportedly declined a summary seeking extension in the tenure of Securities and Exchange Commission of Pakistan (SECP) Chairman Akif Saeed and Commissioner Abdul Rehman Warraich, both appointed in December 2022. While insiders point to audit scrutiny and parliamentary criticism as contributing factors, no official confirmation or denial has been issued by either SECP or the Finance Ministry.
The summary sought to extend the tenure of both officials beyond their current three-year terms, which are set to expire in December 2025. Akif Saeed was elevated to Chairman shortly after he was appointed Commissioner, alongside Abdul Rehman Warraich and Mujtaba Lodhi, by a selection committee headed by the Finance Minister.
Sources familiar with the matter suggest that the Finance Division’s decision followed heightened scrutiny from the Auditor General’s office and recent proceedings in parliamentary committees. The Public Accounts Committee and Senate Standing Committee on Finance have raised concerns over SECP’s internal governance and financial decisions, including a Rs381 million compensation package flagged during audit reviews.
Lawmakers questioned the legality of self-approved remuneration frameworks. They called for amendments to SECP laws perceived as skewed, allowing top officials to set their own benefits without external oversight. The SECP Chairman has faced sustained media criticism over regulatory performance, financial discretion, and public statements that diverge from ground realities.
Critics argue that enforcement remains weak in key areas such as insider trading and compliance monitoring, despite SECP’s mandate to oversee capital markets, insurance, and corporate governance. Despite growing public interest in the matter, multiple outreach attempts were made to the Finance Division’s public relations director and senior officials, as well as SECP representatives, but no response was received.
The lack of official comment has left room for speculation. However, insiders maintain that the officials will continue in their roles until their original terms expire.
Business leaders and investor groups have expressed concern over the timing of the reported decision, warning that leadership uncertainty could disrupt reform momentum in digital asset regulation, insurance oversight, and capital market modernisation.
Small investors fear delays in approvals and compliance reviews, especially with the fiscal year-end approaching. Comparative analysis shows that regulators in India and Bangladesh operate under stricter tenure extension protocols, often requiring cabinet or parliamentary review. Pakistan’s SECP, with its autonomous board structure, is now under legislative review for possible amendments to tenure and compensation clauses.
The Ministry of Finance is expected to clarify its position during the Senate committee hearing scheduled for September 20. Amendments to the SECP Act may be tabled in the next parliamentary session, focusing on tenure limits, oversight mechanisms, and the crucial aspect of financial transparency—widely seen as the need of the hour for regulatory governance.
Sources familiar with the matter noted that, in the absence of formal confirmation, the reported decision may remain subject to review, particularly if institutional or political pressure emerges in the coming weeks.
Leave a Reply