The Senate Standing Committee on Finance has proposed withdrawing the authority of the State Bank of Pakistan’s (SBP) Board to decide the salary of the central bank governor, recommending that such decisions be subject to government approval instead. Senator Anusha Rehman called for legislation to formalize this measure.
The recommendation came during a meeting on Wednesday, where lawmakers also expressed concern over a Rs380 million increase in salaries at the Securities and Exchange Commission of Pakistan (SECP).
SBP Governor’s Salary Under Scrutiny
The committee was informed that as of October 2023, the SBP Governor’s monthly salary stood at Rs4 million, excluding allowances and benefits—an increase from Rs2.5 million in 2019 during former governor Reza Baqir’s tenure. Members summoned the current governor to provide a detailed breakdown of the compensation package.
Senator Rehman stressed that no official, including the President or Prime Minister, has the power to set their own salary, and the same principle should apply to the SBP. Members also suggested developing a uniform salary policy for all 19 regulatory bodies.
Debate on Virtual Assets Bill 2025
The committee also reviewed the draft Virtual Assets Bill 2025, aimed at regulating digital assets while tackling money laundering and terror financing.
- Finance Secretary: The law will enhance transparency and strengthen oversight. It will not directly impact debt or tax revenues.
- SBP Executive Director Dr. Inayat Hussain: Cryptocurrency is not illegal but operates in a grey zone. Authorities are considering either banning or regulating it.
- Concerns Raised: Senators warned that crypto is increasingly being used for ransom payments, hawala, hundi, and terror financing, especially in Sindh and Khyber Pakhtunkhwa.
Despite concerns, the Finance Ministry noted that Pakistan ranks among the top ten countries in terms of crypto investment. The bill underwent a clause-by-clause review and is expected to be passed in the committee’s next session after revisions.
