Government silence on serious allegations fuels frustration.
TARIQ KHATTAK
Islamabad (December 09)
The business community has demanded that the environment of weak transparency and accountability, administrative lapses and internal grouping, the collapse of financial discipline, and the promotion of nepotism and corruption within the country’s key regulator, the Securities and Exchange Commission of Pakistan, be brought to an end so that the deterioration of the national economy can be stopped.
According to traders and industrialists, no action has been taken against those who obtained illegal benefits worth millions and were involved in irregularities amounting to billions, which has caused widespread disappointment. There have been no fines, no penalties, and no dismissals; instead, allowing officials involved in irregularities to appear for commissioner interviews reflects extreme irresponsibility and entrenched favouritism, which could encourage corruption across other state institutions as well.
By failing to deposit 14 billion rupees into the national exchequer, the SECP management not only directly violated the Public Finance Management Act 2019 but also made a mockery of the country’s governance framework, while no other institution took notice. Under the law, all public funds must be deposited into the Federal Consolidated Fund to ensure effective budget-making, auditing, and parliamentary oversight. Still, the SECP held the funds itself, creating a parallel system that experts describe as blatant overreach. Experts also note that employee pay scales were increased without the Finance Division’s approval. Senior officials were granted unauthorised allowances and benefits, including a recently approved club membership valued at 7 million rupees for an influential commissioner.
The corporate sector warns that failing to address the misconduct of SECP officials could further erode public trust in state institutions, undermine investor confidence, and set a dangerous precedent for other regulatory bodies. Legal experts say the government must urgently review the audit report and the appointment process, recover the misappropriated funds, assign clear responsibility, and enforce relevant laws, or risk allowing similar irregularities to continue, further weakening the financial system and the economy.
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