Government stresses constitutional procedure to strengthen governance.
Tariq Khattak
ISLAMABAD (September 17)
The Finance Ministry has made a firm decision to strictly adhere to established legal procedures for appointing new Securities and Exchange Commission of Pakistan leadership. This commitment ensures the stability and continuity of the regulatory framework as the current chairman and commissioners approach the end of their three-year term in December 2025.
The federal government appointed Akif Saeed as chairman, along with commissioners Abdul Rehman Warraich and Mujtaba Ahmad Lodhi, on December 13, 2022, for a three-year term. Sources within the Finance Ministry indicate the government will not grant extensions and will instead adhere to constitutional appointment procedures for the incoming leadership team.
The decision reflects the Ministry’s commitment to institutional stability and transparent governance processes. Under the Securities and Exchange Commission Act, commissioners serve fixed terms with appointments made through established selection criteria and parliamentary oversight mechanisms.
Finance Division officials emphasise that following proper legal channels ensures accountability and maintains public confidence in regulatory institutions. The approach contrasts with past practices in some departments where extensions were sometimes granted without comprehensive performance reviews or stakeholder consultation.
The SECP plays a critical role in Pakistan’s financial sector oversight, regulating capital markets, insurance companies, and corporate governance. The Commission operates as Pakistan’s apex regulator for the non-banking financial sector with authority over stock exchanges, mutual funds, corporate registrations, and insurance sector supervision. Its decisions and policies have a direct impact on the stability and growth of Pakistan’s financial sector.
The current leadership team took charge during challenging economic conditions marked by currency volatility, inflation pressures, and IMF program implementation. Their tenure witnessed significant developments, including the introduction of new corporate governance regulations, digital trading infrastructure upgrades, and enhanced investor protection mechanisms. The Commission also oversaw implementation of beneficial ownership disclosure requirements and strengthened enforcement actions against market manipulation.
However, the tenure also faced scrutiny over several controversial issues that drew parliamentary attention and damaged institutional credibility. The Public Accounts Committee and Senate Standing Committee conducted extensive hearings regarding audit irregularities, the Malamjaba controversy, and allegations of withholding Rs 41 billion in regulatory collections. These developments generated significant parliamentary oversight and media coverage, raising questions about internal governance mechanisms and financial management practices. The controversies, while damaging the Commission’s reputation, also underscored the importance of maintaining transparent operations and robust accountability frameworks.
Market analysts view the structured approach positively, noting that transparent appointment processes strengthen regulatory credibility with international financial institutions and rating agencies. The decision aligns with broader governance reforms aimed at enhancing institutional effectiveness across Pakistan’s financial regulatory framework. This structured approach not only ensures the selection of the most qualified candidates but also enhances the transparency and credibility of the entire appointment process, thereby boosting investor confidence and market stability.
The timing allows for a comprehensive evaluation of candidates through proper selection mechanisms, including parliamentary committee reviews and stakeholder input. This ensures incoming leadership possesses the requisite expertise in areas including capital market development, corporate law enforcement, and financial sector regulation.
For investors and market participants, the commitment to legal procedures provides certainty about institutional continuity and governance standards. The approach demonstrates the government’s priority on strengthening regulatory frameworks rather than extending tenures based on political considerations.
The Finance Ministry’s stance establishes precedent for future appointments across financial regulatory bodies, emphasising merit-based selection and constitutional compliance over expedient extensions that could undermine institutional independence and public accountability.
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