The Securities and Exchange Commission of Pakistan (SECP) has completed an inquiry into the controversial appointment and extraordinary salary increases of the former Chief Executive Officer of Pakistan Reinsurance Company Limited (PRCL), declaring that the company’s board violated multiple corporate laws and governance rules.
According to the inquiry report, SECP found that the PRCL board appointed the former CEO without obtaining mandatory approvals from the federal government or the commission. In a letter sent to the Ministry of Commerce on October 14, 2025, the SECP stated that the appointment was made without fulfilling the required qualifications and that the board approved a compensation package far exceeding the federally approved Special Professional Pay Scale (SPPS-III).
The SECP report said the board ignored several legal provisions, including those under the Companies Act 2017, Insurance Ordinance 2000, Insurance Companies (Sound and Prudent Management) Regulations 2012, and the Public Sector Companies (Corporate Governance) Rules 2013. The Commission has recommended legal proceedings against the responsible officers and PRCL board members.
Despite the enactment of the SOE Act 2023, the PRCL board, in its 178th meeting held on October 2, 2023, approved a revised compensation package for the CEO with retrospective effect from February 2023, a move the SECP said was “legally invalid” under Section 36(3) of the SOE Act, which prohibits retroactive application of the law.
The Commission has forwarded the matter to the Ministry of Commerce for action under the SOE Act, and also shared a copy of its report with the Ministry of Finance.
The inquiry began following a report published in local media, which revealed that the CEO received Rs350 million in salaries and perks over just 32 months, all approved by the PRCL board.
According to media reports, the former CEO, initially appointed in 2022 under the SPPS-III pay scale with a basic salary of Rs500,000 per month, was later granted a package that included, Rs56.3 million fixed bonus, Rs27.5 million performance bonus, Rs52 million in retrospective pay raise and Rs46 million in gratuity and severance benefits
He also received car monetization benefits, payment for unused leave, Rs59 million for foreign travel, and additional director fees, despite owning multiple vehicles and resigning to join another public-sector entity.
The SECP report marks the first official confirmation of extensive financial and governance irregularities within PRCL, placing the onus on the Ministry of Commerce to initiate disciplinary and legal action under the state enterprise laws.
