ISLAMABAD: Senator Anusha Rahman of the PML-N has introduced a private member’s bill in the Senate, proposing amendments to revoke the authority of the boards of three regulatory bodies to fix substantial salaries and benefits.
Three regulators, including the SECP, SBP, and PMDC, doled out multi-million-rupee salary hikes to their respective heads and other high-ranking officials without prior consultations with the federal government. Furthermore, the perks and privileges were also drawn from the national exchequer without intimation. Although the secretary of Finance, is on the Board of Directors of certain regulatory bodies, but he has remained ineffective in effectively representing the federal government.
Prompted by these concerns, Senator Anusha Rahman submitted a private member’s bill in the Senate, aiming to secure parliamentary approval for significant reforms to curb the unchecked authority of these regulatory boards. In the proposed amendments, the powers of fixing salaries and perks of Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP) and Pakistan Medical and Dental Council (PMDC) should rest with the federal government with the approval of the competent authority.
Senator Anusha Rahman submitted the private member bill to amend the SECP Act 1997, proposing to substitute the powers of the Board of Directors and grant powers to the federal government for fixing the salaries and perks of the Chairman of SECP and Commissioners.
The proposed amendments to Sections 14 and 9 of the SBP Act 1956, suggest transferring the power, to fix the salary of the Governor of the State Bank, to the President of Pakistan. The legislation also recommends the inclusion of one senator and one MNA in the State Bank’s Board of Directors, to be nominated by the Chairman of the Senate and the Speaker, respectively. Until 2022, the Governor’s salary was determined by the President, but the authority was shifted to the State Bank Board under amendments made that year.
Senator Anusha Rahman said the current arrangement undermines transparency, as the Governor of the State Bank also serves as chairman of the Board and thus indirectly has a role in setting his own salary. She added that restoring this authority to the President was necessary to address this conflict of interest.