SECP refutes AGP audit report, says financial decisions within law

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has strongly refuted the Consolidated Audit Report 2024-25 prepared by the Auditor General of Pakistan (AGP), calling the objections misleading, repetitive, and already settled in the past.

According to Business Recorder, in a firm response, the SECP clarified that it operates under the SECP Act, 1997, which gives the Commission full legal authority to seek approval of budgetary and financial matters from its Policy Board.

This board includes secretaries from the Finance, Commerce and Law Divisions, the Deputy Governor of the State Bank, the SECP chairman, and six private sector experts appointed by the federal government. The regulator stressed that this structure ensures strong oversight of all decisions.

SECP terms audit report ‘misleading’

The AGP report had alleged that the SECP unlawfully revised salaries and allowances of its employees and failed to deposit certain revenues into the Federal Consolidated Fund. Rejecting these charges, the Commission said all such decisions were taken strictly in line with the law and with approval from the competent authority.

It also criticised the way some sections of the media had reported the matter, noting that while objections from the audit report were highlighted, the SECP’s responses included in the same report were ignored. “Even claims that the SECP did not attend a Departmental Accounts Committee meeting are factually incorrect, as no such invitation was ever received,” the regulator said.

The SECP explained that the audit report is still at an observation stage and will be discussed at the Departmental Accounts Committee (DAC) level, where both sides will be heard. In the past, similar objections were dismissed by the Public Accounts Committee, which upheld the SECP’s legal position in July 2025.

Commitment to transparency

The regulator also defended its policy of revising employee packages, saying it needs to retain highly skilled professionals and align salaries with market practices. Such revisions, it said, are always carried out with Policy Board approval after proper surveys and benchmarking.

Calling the renewed criticism a “deliberate campaign,” the SECP expressed confidence that the issue would once again be resolved at the DAC level. It reaffirmed its commitment to transparency and maintaining international standards for financial regulators.

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