The Securities and Exchange Commission of Pakistan (SECP) has issued compliance notices to seven power sector–related entities for failing to meet statutory filing and corporate governance requirements under the Companies Act, 2017. The action follows persistent non-compliance related to annual returns, financial statements, auditor appointments, and mandatory board composition, according to official sources cited in Business Recorder.
In a formal communication addressed to the chief executive officer of the National Grid Company (NGC), the SECP highlighted multiple violations of the Companies Act. These included the failure to file annual returns for 2025 under Section 130, non-submission of annual financial statements for the same year under Section 233, and the failure to appoint an auditor for 2025 as required under Section 246. The regulator also pointed to governance lapses, including the absence of a female director on the board for the years 2023 to 2025 in violation of Section 154, and the non-appointment of independent director(s) as mandated under Section 166.
The SECP noted that NGC had previously been informed of its statutory obligations through a letter issued in October 2025. Despite this prior intimation, the identified compliance gaps remained unaddressed. The commission has now directed the company to file all outstanding statutory documents, rectify governance-related deficiencies, and pay applicable filing fees within the prescribed timeframe.
The regulator warned that continued non-compliance could result in the company being listed as a defaulter on the SECP’s official website. It further stated that failure to submit annual returns or financial statements for two consecutive years could lead to a company being classified as inactive under Section 424 of the Companies Act, following due process.
In addition to the National Grid Company, several other power sector entities were cited for similar violations. Gujranwala Electric Power Company was flagged for failing to appoint a female director and independent directors for the years 2023 to 2025, reflecting ongoing governance deficiencies.
The Power Planning and Monitoring Company was cited for non-filing of annual returns for 2024 and 2025, failure to appoint auditors for the same period, and non-compliance with mandatory female director requirements. Hyderabad Electric Supply Company was also found to be in breach of statutory obligations due to non-filing of annual returns and financial statements for 2024 and 2025, failure to appoint an auditor, and the absence of required female and independent directors on its board.
Similarly, the Tribal Areas Electric Supply Company was flagged for missing statutory filings for 2025 and for non-compliance with board-level governance requirements. The SECP also issued notices to National Engineering Services Pakistan (Private) Limited (NESPAK) for non-filing of annual returns, failure to appoint auditors, and non-appointment of a female director over multiple years.
Lakhra Power Generation Company Limited was cited for non-filing of annual returns and financial statements from 2022 to 2025, along with failure to appoint auditors during the same period. In addition, the WAPDA Endowment Fund for Sports was flagged for failing to file annual returns and financial accounts for 2025, not appointing an auditor, and not ensuring the required board composition.
The SECP reiterated that all companies, including state-owned and power sector entities, are required to ensure timely compliance with statutory filing and governance obligations under the Companies Act, 2017. The commission emphasized that adherence to corporate governance standards is critical for transparency, accountability, and the effective functioning of public and private sector organizations.
The latest enforcement action highlights the regulator’s increased focus on improving compliance and governance standards in the power sector, which remains a key component of Pakistan’s economic and infrastructure framework. Continued monitoring and enforcement, the SECP noted, will remain essential to strengthening corporate discipline and regulatory oversight across the sector.
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