Concerns grow over merit and governance in regulatory institutions
Tariq Khattak
Islamabad: The business community has expressed disappointment over the lack of action against any official following reports of multi-billion-rupee irregularities in the Securities and Exchange Commission of Pakistan (SECP), warning that such inaction would only encourage corruption while damaging domestic and foreign investment as well as public trust.
Business circles are also questioning why the SECP chairman allegedly engaged in such large-scale financial misconduct and how commissioners, executive directors, and other officials became part of what they describe as institutional loot.
Questions are emerging about governance, merit, and oversight in one of the country’s key regulatory institutions where several officers are alleged to have misused official powers.
According to insiders, the absence of merit-based appointments and weak enforcement mechanisms have eroded institutional performance and accountability in regulatory agencies. They allege that promotions and postings are influenced by political connections rather than competence, creating an environment where officials focus more on maintaining patronage networks than enforcing financial discipline.
Sources within the SECP suggest that the alleged benefits were not limited to one official but extended across a network of officers, including senior executive directors. Meanwhile, the Finance Ministry and SECP have yet to issue formal statements.
Representatives of the business community argue that failure to conduct an impartial inquiry will further erode investor confidence. “When regulators lose credibility, markets lose stability,” said one Karachi-based market analyst, noting that governance issues in SECP have direct spillovers on listed companies, audit practices, and overall market perception.
Observers say the controversy has two key public impacts, declining business confidence and a potential slowdown in domestic and foreign investment. Weakened regulatory credibility also affects small investors, who rely on SECP oversight to ensure fair market practices.
Those mentioned in audit reports, parliamentary committee meetings and media reports include Chairman SECP Akif Saeed, Executive Directors Asif Jalal Bhatti and Musarrat Jabeen and commissioners Abdul Rehman Warriach, Mujtaba Ahmed Lodhi, Zeeshan Rehman Khattak and now retired commissioner Amir Khan.
Economic experts believe that Pakistan’s broader governance crisis is reflected in such episodes. They urge the government to review internal audit systems, tighten appointment criteria, and strengthen accountability frameworks across financial regulators. Without structural reform, they warn, Pakistan risks deepening market uncertainty and undermining public trust in its regulatory architecture.
