Seven million payout for outgoing commissioner heightens concerns.
Tariq Khattak
ISLAMABAD (Dec 03)
A new round of scrutiny has opened around the Securities and Exchange Commission of Pakistan (SECP) after fresh allegations that its top leadership is using public money to avoid accountability for alleged mismanagement and to secure personal influence as their terms near expiry. Senior officials say the chairman approved benefits for his close circle even as multiple audit questions and governance complaints remain unresolved. The latest issue involves a payment of seven million rupees for a private Islamabad Club membership for outgoing Commissioner Abdul Rehman Warraich.
The commission cleared the payment despite the membership being a lifelong private asset that can pass to legal heirs. Warraich is set to complete his term next month and is widely considered close to an influential federal secretary who could play a role in shaping the government’s response to pending audit findings and mismanagement claims involving the regulator.
Officials say the timing has raised suspicions that the outgoing leadership is securing loyalty inside and outside the institution. Critics argue that if the chairman is removed once his term ends, commissioners who received generous perks may feel obliged to assist him in future engagements. Senior officers describe the move as the use of state money to build personal alliances at a moment when the government has imposed strict austerity measures across ministries and attached departments.
The regulator has already faced strong criticism for its spending practices. The chairman draws an estimated monthly remuneration of around five million rupees while commissioners receive multimillion rupee salaries and allowances. Their benefits include security staff, personal drivers, new Civic vehicles costing about nine million rupees, heavy annual bonuses and a sharp rise in foreign travel with dollar linked daily allowances and luxury hotel stays. Internal sources say recent foreign delegations to Dubai, London, Singapore and Colombo cost millions even though most conferences offered virtual participation options.
Public impacts continue to widen. Households already burdened by high taxes question why senior regulators receive lifetime private perks from public funds. Businesses struggling with compliance costs and weak enforcement say the regulator’s spending erodes confidence in its oversight role. What happens next depends on how the federal government addresses pending audits and whether approvals granted in the final weeks of the leadership’s term withstand review.
The controversy comes as international lenders warn Islamabad about governance failures. The IMF has flagged an estimated twenty billion dollars in annual leakages from corruption, procurement gaps and weak regulatory enforcement. Despite these warnings, officials say there has been little movement inside the government to tighten controls or hold powerful regulators to account. Economists warn that ignoring these red flags could complicate Pakistan’s next programme negotiations, increase fiscal risks and deepen public distrust in state institutions.
