ISLAMABAD, JUL 30 /DNA/ – The Securities and Exchange Commission of Pakistan (SECP) has agreed to immediately withdraw a controversial press release issued on 21 May 2025, following objections raised by United Insurance Company Pakistan Ltd (UIC). The assurance was conveyed to the Islamabad High Court by SECP’s Chief Prosecutor, Syed Asad Haider, during a hearing.
The development came as the court heard a contempt of court filed by the UIC against SECP Chairman Akif Saeed and others, represented by advocates Ahmad Hassan and Ch. Muhammad Atif. They argued that the press release had adversely impacted UIC’s business operations and reputation.
Additional Attorney General Rashid Hanif appeared on behalf of the federation, while Chief Prosecutor Asad Haider and Special Prosecutor Hasnain Raza represented SECP. The respondents assured the court that the SECP had decided to withdraw the press release without delay, an illegal stance that was reversed.
In response, the court noted that there was no need to proceed further. However, the petitioner’s counsel stated that a final decision should depend on whether SECP files a formal compliance report confirming the withdrawal. If such a report is submitted, the petition will not be pressed.
The court directed that the compliance report be submitted before the next hearing and adjourned the case to 12 August 2025.
It may be recalled that Assistant Attorney General Asia Batool, in a letter dated 21 July, warned the SECP about the contempt proceedings and conveyed the High Court’s displeasure over the non-compliance with earlier directives.
As previously reported, the SECP had barred UIC from the guarantee business illegally and issued a damaging press release without any defensible regulatory basis. The move triggered intense industry backlash, with stakeholders warning of increased uncertainty in the insurance sector.
The SECP has so far not publicly explained the rationale behind either the issuance or the withdrawal of the 21 May release. However, legal observers say the Commission’s latest decision reflects a retreat amid mounting judicial scrutiny and reputational loss.
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