ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed 183 major amendments to the Companies Act, 2017, aimed at reducing regulatory burdens on companies and improving the ease of doing business in Pakistan. The reforms seek to streamline corporate compliance, promote digitalisation, and strengthen governance and accountability within the corporate sector.
According to details released by the SECP, a dedicated committee comprising members from the SECP and the Board of Investment (BoI) was formed to review the Act and recommend amendments. The committee undertook a comprehensive approach, considering international best practices, stakeholder feedback, operational challenges, and alignment with SECP’s digitalisation initiative, Leading Efficiency through Automation Prowess (LEAP).
The proposed amendments aim to achieve several key objectives, including reducing unnecessary regulatory hurdles, promoting corporatisation, improving efficiency in business operations, and eliminating ambiguities and redundancies in existing legislation. By enhancing transparency in internal company processes and dealings with the SECP, the reforms are designed to foster trust and confidence in Pakistan’s corporate ecosystem.
The changes also focus on clear responsibilities and heightened accountability for key company officials, alongside swifter enforcement measures. By shifting certain provisions from penal sanctions to regulatory remedies or pecuniary penalties, the reforms seek to promote business confidence, align with global best practices, and encourage voluntary compliance.
Ease of doing business is a central theme of the proposed amendments. Measures include simplified compliance requirements, reduced reporting obligations, and streamlined regulatory processes, all aimed at facilitating the development of the corporate sector and supporting entrepreneurship. The amendments also emphasise digitalisation, including electronic filing and record-keeping, remote participation in corporate meetings, and robust measures for data protection and account maintenance.
Corporate governance principles are also being strengthened through the reforms. Proportionality in financial audits and filing obligations will be introduced based on the size of companies, while globally recognised corporate governance standards will be encouraged. These initiatives are expected to improve accountability, oversight, and operational efficiency within Pakistan’s corporate sector.
According to the SECP, the proposed amendments are forward-looking and designed to ensure that Pakistan’s corporate regulatory framework remains relevant, competitive, and conducive to growth. By addressing emerging challenges and incorporating international best practices, the reforms aim to position Pakistan as a transparent and business-friendly destination for corporate activity.
The scope of the amendments is expected to cover all aspects of corporate functioning, addressing practical difficulties faced by companies, enhancing digital processes, and fostering a culture of compliance and good governance. Once implemented, these measures are likely to accelerate corporatisation, support investment, and strengthen the overall business ecosystem in Pakistan.
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