SPECIAL REPORT. ISLAMABAD.AUG. 23
The Securities and Exchange Commission of Pakistan (SECP) has made a bold move by directly challenging the Auditor General of Pakistan’s (AGP) report, sparking concerns among business leaders and experts about the potential impact on transparency and the investment environment. In a press release, the SECP rejected the AGP’s observations on illegal salary increases and failure to collect revenue, citing the SECP Act 1997 as grounds for its defense.
This development has been termed as a dangerous precedent by experts and business leaders, as it could weaken transparency and create uncertainty in the investment environment. The SECP’s actions suggest that it believes institutional laws take precedence over constitutional jurisdiction, which is a worrying sign. By attempting to redefine the accountability framework, the SECP may undermine the federal accountability structure, potentially sending a negative signal to international investors about Pakistan’s commitment to institutional oversight and transparency.
The business community has criticized this move, stating that if the SECP can reject AGP reports based solely on its legal interpretation, every autonomous institution may follow suit, effectively dismantling the federal accountability framework. This could lead to a loss of confidence in the capital market and create an uncertain investment environment. Furthermore, the SECP’s defense of massive salary increases by referencing market competition and expert services raises questions about its commitment to public accountability and adherence to government regulations ¹.
