Public funds used to pay SECP officer beyond legal ceiling
Traiq Khattak
ISLAMABAD: The Securities and Exchange Commission of Pakistan pays its media director a monthly salary exceeding that of the prime minister and president, raising questions about spending priorities at the capital markets regulator. This disparity in compensation not only raises concerns about the regulator’s financial management but also calls into question its governance and priorities.
Internal records indicate that Affan Haider, Director of Media and Corporate Communications, receives a gross monthly remuneration of Rs 1.2 million, or Rs 14.4 million annually (1 crore 44 lakh rupees). This salary exceeds the official salary of the Prime Minister and President, as well as the MP-I scale ceiling for senior public sector positions.
Despite internal human resource rules requiring commission sanction for compensation exceeding the prescribed limits, the SECP has not publicly disclosed board approval or the procedural justification for the package. This lack of transparency is a cause for concern, as no such decision appears in the regulator’s 2023 or 2024 annual reports, nor in its quarterly disclosure statements, insiders informed.
Haider’s appointment in Nov 2024 to manage external communications and stakeholder relations came at a critical time for the regulator. Under mounting criticism over enforcement lapses and delayed prosecution of market manipulation complaints filed by small investors, the situation called for urgent action and reform.
Parliamentary committees overseeing financial regulation have repeatedly questioned SECP’s administrative spending, particularly on non-core functions. The understaffing of investor complaint resolution mechanisms, crucial for maintaining investor confidence, highlights the pressing need for improved governance and resource allocation.
Finance ministry sources say similar pay packages at autonomous bodies have drawn scrutiny during IMF program reviews focused on public sector rationalisation. The IMF has, in the past, either directly or indirectly encouraged the government to establish a uniform compensation framework across all public sector entities. This highlights the crucial need for SECP to align its compensation practices with international standards.
A public finance expert said regulators must justify exceptional packages in terms of performance metrics. “When the capital markets regulator spends more on communications than market surveillance, it signals misaligned priorities that ultimately harm investor confidence,” he noted.
The Senate Standing Committee on Finance has called for standardised compensation frameworks across all regulatory bodies, arguing that current discretion enables patronage appointments without merit justification. Insiders say the SECP’s Rs8.7 billion annual budget should prioritise enforcement capacity over administrative expansion, as evidence of resource misallocation continues to erode regulators’ effectiveness and shock stakeholders.
The Public Finance Management Act requires all government entities, including autonomous regulators, to follow prescribed pay scales unless exceptional circumstances are documented and approved through proper channels. The SECP maintains that it operates independently under its enabling legislation. However, the Auditor General of Pakistan has challenged similar claims in audit observations.
Lawmakers should urge the Finance Division and Establishment Division to submit a consolidated list of all autonomous bodies that pay above the MP-I limits. If acted upon, the SECP case could set a precedent for stricter audit and rationalisation of pay structures across regulators, many of which have long claimed autonomy without corresponding accountability.
SECP’s legal position on pay autonomy versus government oversight remains contested and may require judicial clarification. Affan Haider was contacted, but he did not respond as usual.
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