Finance Secretary directed to act on complaint
Tariq Khattak
ISLAMABAD: The Lahore High Court has directed the Finance Secretary to initiate legal proceedings against alleged corruption and misuse of authority at the Securities and Exchange Commission of Pakistan. This action follows a civil society group’s concerns about unpaid surplus funds and regulatory pressure on insurance companies.
Syed Zaegham Abbas, Secretary General of Anti-Corruption Movement Pakistan, filed writ petition number 60741 of 2025 through advocate Mian Muhammad Aslam. The petition alleges that SECP violated legal requirements by failing to deposit approximately Rs 14 billion in surplus funds into the Federal Consolidated Fund, which the petitioner claims was mandatory under applicable law. The petition cites this as a breach of financial discipline and questions why the funds were retained by the regulatory body instead of being transferred to the national treasury.
The petition also names Executive Director Asif Jalal Bhatti, alleging he abused regulatory authority by pressuring insurance companies to approve illegal claims. The petitioner argues that such actions represent misuse of supervisory powers for purposes outside the scope of legitimate regulatory oversight. According to the petition, these actions could undermine the integrity of the insurance sector and erode public trust in regulatory mechanisms designed to protect policyholders and maintain market discipline.
Abbas stated in the petition that a formal complaint was sent to the Finance Ministry, but received no substantive response or corrective action. The complaint sought accountability measures and an independent review of the allegations, which the petitioner argues are supported by financial documentation and regulatory correspondence. The lack of response prompted the filing of the court petition seeking judicial intervention.
The petition requested the court to remove Asif Jalal Bhatti from his position and order an independent inquiry into all allegations involving financial irregularities and abuse of authority. After hearing the initial arguments presented by the petitioner’s counsel, the Lahore High Court issued formal notices to all named respondents, including SECP and the Finance Secretary. The court directed the Finance Secretary to initiate appropriate legal proceedings in accordance with relevant laws and regulations governing financial oversight and accountability.
The case highlights broader concerns about regulatory accountability and the enforcement of financial discipline within oversight institutions. The court’s directive places responsibility on the Finance Ministry to examine whether proper procedures were followed in handling surplus funds and whether any abuse of regulatory authority occurred within the insurance division.
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