Regulator's meeting at hill station raises eyebrows

In a move that raises questions about fiscal discipline and public accountability, the Securities and Exchange Commission of Pakistan (SECP) has planned a high-end Registrar Conference at the tourist hill station of Malam Jabba, Khyber-Pakhtunkhwa.

This conference is slated for June 28-29 and SECP officials left on Friday to attend the event, estimated to cost Rs8 million, as approved by the commission.

According to sources, for the first time in SECP's history, the Registrar Conference is being held at a luxury hill station with management lodging at an A-class hotel for the SECP chairman, commissioners, executive directors and heads of departments.

Sources within the SECP confirmed that the stated agenda of the conference was to discuss regulatory reforms and promote the exchange of ideas among registrars to address existing and emerging challenges.

The timing of the event is also controversial as it comes at a time when the prime minister has issued clear directives to all government departments to adopt austerity measures, cut unnecessary expenditures and avoid lavish events – a policy that comes in the wake of Pakistan's fiscal situation and reliance on IMF support.

"This is a blatant contradiction of the federal government's austerity instructions," said a senior official familiar with the matter. "Spending millions on a luxury conference undermines the credibility of the government's reform agenda."

Further compounding the problem is the SECP's recent revision of its fee structure, where incorporation charges were nearly doubled and the cost of filing documents was increased significantly.

Effective from April 21, 2025, the commission has imposed new and higher fees across various company types and submission modes. It has also introduced non-refundable processing fees for applications seeking regulatory approvals, exemptions and directions, affecting thousands of businesses and professionals.

Adding to the controversy is the SECP's frequent foreign travel. In the past year alone, the commission's top leadership reportedly undertook dozens of foreign visits to attend international conferences and events. Many of these trips were funded by the public exchequer.

The cabinet has already placed restrictions on such publicly funded foreign travel, citing the need for financial restraint.

When the SECP spokesperson was contacted, he stated "the conference is a strategic session of the commission, which is held annually". "Only employees attend it and their families do not attend," he added.