SECP Backdated Salary Payments
SECP Backdated Salary Payments. The Securities and Exchange Commission of Pakistan (SECP) has found itself at the centre of a growing controversy after it was revealed that Rs. 1.191 billion was paid out to its top officials and staff in salaries, perks, privileges, and post-retirement benefits. What makes this case particularly notable is that these SECP backdated salary payments were made with retrospective effect, covering a period of 16 months from July 1, 2023 to October 31, 2024. The SECP Board approved the payments and have since attracted serious attention from lawmakers and the general public alike.
Latest Update (October 2026)
Since this article was first published, the controversy has escalated significantly. In December 2025, outgoing SECP Chairman Akif Saeed and two commissioners received final financial settlements totaling about Rs90 million on their last day in office (December 12, 2025) – despite a directive from the Senate Standing Committee on Finance and Revenue just two days earlier (December 10, 2025) to withhold the payments until the Public Accounts Committee reviewed an audit objection raised in the Auditor General of Pakistan’s report for FY2024-25. The settlements included provident fund benefits of roughly Rs21 million each (20% of basic salary over 36 months), gratuity of about Rs9 million, and a luxury Japanese vehicle valued near Rs9 million per commissioner – roughly Rs30 million each in total. The SECP spokesperson said the settlements were released in accordance with law and that no direction or restraint order was in force at the time. Source: The News, December 2025
The Auditor General’s report revealed a 40% retrospective increase in the remuneration of SECP officials effective from July 2023 – the chairman’s total salary package for FY2023-24 reached Rs41.53 million (about Rs3.4 million per month), and each commissioner received Rs35.8 million. Auditors treated cumulative pay and allowance revisions of Rs377.22 million as unauthorised without Finance Division approval, flagged irregular pay and perks of nearly Rs156.6 million plus entertainment allowances of about Rs110.9 million, and asked the Finance Division to either regularise the increases or direct a reversal. A separate finding noted the SECP had not remitted almost Rs14 billion to the Federal Consolidated Fund – about Rs7.11 billion in revenues and Rs6.99 billion in surplus balances. Source: TechJuice (AGP report)
In response, the Senate Standing Committee on Finance and Revenue moved to curtail the salary-setting powers of the SECP and SBP boards, calling for amendments to the SECP Act and the SBP Act so that executive pay is approved by the federal cabinet and parliament instead – a motion that won unanimous backing after a recommendation from Senator Anusha Rahman, with the Finance Division tasked to prepare draft amendments within a month. Only three of 18 regulators (SECP, SBP and PMDC) had salaries fixed by their own boards; the remaining 15 already needed cabinet approval. Source: TechJuice; PakTribune
The SECP now operates under new leadership: Dr Kabir Ahmed Sidhu, formerly chairman of the Competition Commission of Pakistan, was appointed SECP Chairman by the federal government. In September 2026, under his leadership, the SECP announced it had disposed of 98% of its adjudication caseload – 573 cases decided with penalties exceeding Rs4.73 billion imposed on violators of the Companies Act and other laws, including 117 adjudication orders against state-owned enterprises. Source: Mettis Global, 20 September 2026
How the Issue Came to Light
The controversy did not surface on its own. It was brought into the public spotlight when Anusha Rahman raised the matter in parliament, questioning the financial practices of the regulator. Her concerns went beyond just the salary payments. She highlighted that as much as Rs. 2,000 billion may have been placed outside the government’s main account system, which could amount to a serious violation of established financial laws. This parliamentary intervention turned what might have remained an internal matter into a question of national accountability and governance.
Detailed Breakdown of SECP Backdated Salary Payments
To understand the full scale of these SECP backdated salary payments, a look at the official figures tells a clear story. The then chairman along with three members received Rs. 65.559 million, while nine executive directors drew Rs. 68.787 million. Sixteen directors received Rs. 87.046 million and 33 directors received Rs. 135.123 million, making the director-level payouts particularly significant.
Further down the hierarchy, 32 joint directors received Rs. 56.391 million, 58 additional joint directors received Rs. 68.541 million, 42 deputy directors received Rs. 25.142 million, and 55 assistant directors received Rs. 18.296 million. Three management executives received Rs. 398,481, while 140 staff and non-management employees collectively received Rs. 53.839 million. The numbers span every level of the organisation, making this a institution-wide financial decision rather than a benefit limited to senior leadership alone.
How the Total Rs. 1.191 Billion Was Distributed
Out of the total Rs. 1.191 billion, the payments were divided into two broad categories. The first portion, amounting to Rs. 579.139 million, was disbursed directly as salary arrears and perks for the 16-month backdated period. The second portion, Rs. 612.054 million, was transferred into gratuity, trust, and pension funds. According to the SECP, this second amount is intended to cover employees’ terminal benefits at the time of retirement or separation from service. Together, these two figures add up to the total Rs. 1.191 billion that has sparked the current debate.
SECP’s Official Justification
When questioned about the legitimacy of these payments, the SECP offered a formal defence. The regulator stated that the proposal was approved by its Policy Board under the SECP Act 1997, which it identified as the competent and legally authorised body for making such financial decisions. The SECP further explained that the payments were based on a salary benchmarking exercise carried out by KPMG, one of the world’s leading audit and advisory firms, with the goal of bringing employee compensation in line with prevailing market standards.
On the question of whether approvals were sought from the Ministry of Finance or the Prime Minister’s Office, the SECP firmly maintained that its Policy Board holds the legal authority to approve such expenditures independently under the existing regulatory framework. No external ministerial approval, the regulator argued, was required.
Transparency and Audit Concerns
Despite the SECP’s explanations, audit scrutiny has since intensified. The Auditor General of Pakistan flagged cumulative unauthorised pay and allowance revisions of Rs377.22 million – including a 40% retrospective increase effective July 2023 – and asked the Finance Division to either regularise the increases or direct their reversal. A Senate Standing Committee on Finance and Revenue directive to withhold final settlements of outgoing officials was defied in December 2025, and the committee has since moved to amend the SECP Act so the board can no longer set executive pay unilaterally. While the SECP maintains it follows a structured process to address audit observations, critics argue these findings show accountability gaps at the very regulator meant to enforce financial discipline on others.
Frequently Asked Questions
Q: Who exposed the SECP salary payments controversy?
Senator Anusha Rahman (PMLN) raised the matter in the Senate, pointing out that state entities had parked about Rs2,000 billion in commercial bank accounts instead of depositing it in the Federal Consolidated Fund or Treasury Single Account, in violation of the Public Finance Management Act, 2019. Source: The News
Q: What did the Auditor General find?
The AGP found a 40% retrospective salary increase effective July 2023, a chairman’s package of Rs41.53 million for FY2023-24, Rs377.22 million in unauthorised pay revisions, and nearly Rs14 billion not remitted to the Federal Consolidated Fund. Auditors asked the Finance Division to regularise or reverse the increases. Source: TechJuice (AGP report)
Q: Did the outgoing chairman receive payments despite objections?
Yes. On December 12, 2025, outgoing Chairman Akif Saeed and two commissioners received final settlements of about Rs90 million combined – roughly Rs30 million each including a vehicle – despite the Senate Standing Committee’s December 10 directive to withhold them pending PAC review. The SECP said no restraint order was in force at the time. Source: The News, December 2025
Q: Can the SECP board still set its own salaries?
The Senate Standing Committee on Finance has moved to amend the SECP Act and SBP Act so that executive salaries require federal cabinet and parliamentary approval, as is already the case for 15 of 18 regulators. The Finance Division was tasked with drafting the amendments. Source: PakTribune; TechJuice
Q: Who is the SECP chairman now?
Dr Kabir Ahmed Sidhu, formerly chairman of the Competition Commission of Pakistan, was appointed SECP Chairman. In September 2026 he announced the SECP had cleared 98% of its adjudication caseload with over Rs4.73 billion in penalties imposed. Source: Mettis Global, 20 September 2026
Conclusion
The SECP backdated salary payments controversy has grown well beyond its original Rs1.191 billion figure. What began as parliamentary scrutiny of retrospective payouts turned into a full audit saga: a 40% retrospective pay increase flagged as unauthorised, Rs377.22 million in questioned revisions, Rs14 billion not remitted to the treasury, and Rs90 million in final settlements paid out in December 2025 against a Senate committee’s directive. With the Senate now moving to strip regulators of self-set salary powers and new chairman Dr Kabir Ahmed Sidhu clearing 98% of the adjudication backlog with Rs4.73 billion in penalties, the episode stands as a stark reminder that even regulators must answer to the financial discipline they enforce on others.