The Securities and Exchange Commission of Pakistan has initiated a formal training program aimed at strengthening the restructuring capacity of state-owned enterprises and teams working with the Privatization Commission. As the government accelerates its reform agenda for public-sector entities, the SECP’s latest effort focuses on equipping officials with a clearer understanding of the regulatory mechanisms that govern mergers, amalgamations and broader corporate restructuring activities.
Hosted at the SECP headquarters in Islamabad, the session brought together nearly 50 senior officers representing 24 different state-owned enterprises. These participants operate within sectors that have been under heightened scrutiny in recent years due to persistent financial losses and operational inefficiencies. With the government examining multiple approaches for turning around struggling industrial units, the need for deeper institutional familiarity with restructuring laws has become increasingly urgent.
The training session centered on Schemes of Arrangement, a key procedural route through which entities can reorganize their structure, consolidate operations or address insolvency-related concerns. SECP officials outlined the step-by-step compliance requirements, documentation standards and statutory timelines involved in preparing and submitting restructuring proposals. Participants were guided through the regulator’s review process, enabling them to understand how restructuring applications are examined and what regulatory constraints may emerge during evaluation.
A significant portion of the training examined the legal frameworks underpinning corporate restructuring, particularly the Companies Act of 2017, the Corporate Rehabilitation Act of 2018 and the Corporate Restructuring Companies Act of 2016. These laws have gained traction as policymakers increasingly consider restructuring and rehabilitation as viable alternatives to traditional privatization pathways. Officials discussed how these legal instruments can help address debt burdens, revive non-performing industrial units and enable more efficient management structures.
The workshop also featured discussions on practical challenges that arise when managing restructuring processes within large public-sector organizations. SECP representatives shared examples of common procedural hurdles, such as incomplete documentation, delays in board approvals and difficulties in coordinating with multiple stakeholders. Participants were briefed on typical bottlenecks that slow down mergers or amalgamations and how proactive planning can reduce regulatory friction.
Another focal point was the government’s broader push to revive sick industrial units using alternative legal mechanisms rather than relying solely on privatization. This approach is expected to influence future policy direction, particularly in areas such as corporate governance, financial reporting and operational restructuring. Officials from SOEs engaged in detailed discussions on how these mechanisms could be applied to their respective organizations, and how restructuring can create pathways for improved performance or prepare entities for more structured privatization stages.
The SECP emphasized that training is an essential part of ensuring that restructuring efforts across the public sector meet regulatory expectations and align with best practices. As more state-owned enterprises explore consolidation, rehabilitation or organizational redesign, regulators aim to streamline processes while maintaining compliance standards.
This training initiative reflects the SECP’s role not just as a regulator but also as a capacity-building institution guiding public-sector transformation. By strengthening institutional understanding of restructuring frameworks, policymakers hope to accelerate momentum in reforming some of Pakistan’s most financially stressed enterprises, ultimately contributing to better governance, improved public-sector efficiency and more sustainable economic outcomes.
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