Senators Flag SBP Clause Allowing Officials to Set Own Salaries

Senators have raised concerns over a State Bank of Pakistan (SBP) clause that enables its top officials to set their own salaries and benefits without requiring government approval. Lawmakers argued the provision undermines accountability and called for its immediate review.

At a Senate Standing Committee on Finance and Revenue meeting chaired by Saleem Mandviwalla, Senator Anusha Rehman pointed out that the SBP Amendment Act 2022 gives the central bank’s board of directors authority to determine the salaries of the governor and deputy governors. Since the governor also chairs the board, she termed the arrangement a serious conflict of interest that sidelines the Ministry of Finance and the federal cabinet.

Before the 2019 amendment, the salaries of SBP governors and deputy governors were set by the President on the recommendation of the Prime Minister, following a process initiated by the Finance Ministry. However, after the legal change, former governor Reza Baqir’s salary was fixed at Rs2.5 million per month with a 10 percent annual increase. This was later revised upward to Rs4 million per month.

SECP Perks Under Scrutiny Amid Conflict of Interest Concerns

Senator Rehman stressed that salary-setting powers must return to the government. She added that similar provisions exist in the Securities and Exchange Commission of Pakistan (SECP) law and have led to scrutiny after an audit revealed that the SECP chairman’s perks and benefits amounted to Rs381 million.

Other senators echoed concerns about misuse of powers, with Mohsin Aziz calling for a thorough investigation into the SECP benefits case. However, he and Senator Faisal Sabzwari both cautioned against public remarks that could damage the reputation of key financial institutions. They urged the issue be further examined in detail with the Finance Ministry and SBP, possibly in an in-camera session.

A written statement from the Finance Ministry confirmed that the SBP board approved a Rs4 million monthly salary for the governor in October 2023, justifying the figure as competitive with financial sector standards.

Meanwhile, the committee also continued reviewing the proposed Virtual Assets Bill, 2025, identifying gaps and recommending revisions to ensure a balanced regulatory framework.