The Securities and Exchange Commission of Pakistan (SECP) has proposed a comprehensive professional qualification framework for official liquidators, interim administrators and insolvency experts as part of efforts to strengthen corporate restructuring and insolvency processes in the country. The proposed framework is intended to establish clearer professional standards for individuals involved in company dissolution, rehabilitation of financially distressed businesses and the protection of creditors’ interests.
According to the consultative document issued by the SECP, Pakistan currently has 64 empanelled official liquidators and nine approved insolvency experts. The regulator has identified the absence of a standardised mechanism for professional performance and training as an issue affecting judicial efficiency and creditor confidence. The proposed qualification framework seeks to address these concerns by introducing structured training, examinations, professional development requirements and conduct standards for individuals seeking to work in insolvency-related roles.
Under the proposed framework, individuals seeking empanelment as official liquidators or relevant insolvency professionals would be required to hold a degree in a relevant field. Eligible academic backgrounds would include law, business, finance and accounting. In addition to the academic requirement, applicants would have to successfully obtain an Insolvency Professional Training Certificate from the Institute of Financial Markets of Pakistan (IFMP). The proposed certification structure is designed to provide professionals with specialised knowledge and practical capabilities relevant to corporate insolvency and restructuring.
The proposed certification process would be divided into three levels, consisting of Foundation, Practitioner and Advanced/Global stages. The framework combines written examinations with oral evaluations and case simulations to assess both technical knowledge and practical understanding. This structure is intended to provide a progressive qualification route through which insolvency professionals can develop their expertise and demonstrate their ability to handle increasingly complex restructuring and liquidation matters.
The curriculum proposed by the SECP would cover several areas relevant to insolvency practice. These include Pakistan’s domestic insolvency laws, cross-border restructuring and international principles aligned with the United Nations Commission on International Trade Law (UNCITRAL) model laws. The training would also include forensic accounting and valuation techniques, giving professionals a broader understanding of financial investigations, asset assessment and business valuation during restructuring and liquidation proceedings.
The proposed framework would also introduce continuing professional development requirements for professionals who remain active on the SECP’s panel. Certified professionals would be required to complete 20 hours of mandatory Continuing Professional Development (CPD) every year. The requirement is intended to ensure that professionals maintain their knowledge of changes in insolvency regulations, financial practices, restructuring methods and other developments affecting their work after completing the initial qualification process.
Professional conduct would form another major component of the proposed framework. The SECP has proposed a strict code of conduct covering areas including conflicts of interest, independence and ethical performance. The framework would also prevent employees of the SECP from serving as liquidators, creating a separation between regulatory responsibilities and professional insolvency assignments.
The proposed measures are aimed at improving the overall process through which financially distressed companies are handled and dissolved. By establishing qualification and training requirements, the SECP intends to create a more structured professional environment for official liquidators, interim administrators and insolvency experts. The regulator has linked the proposed framework with objectives including streamlining company dissolution, speeding up the rehabilitation of distressed businesses and strengthening safeguards for creditors.
The SECP has invited comments and feedback from stakeholders and members of the public on the consultative document. The proposed framework is available through the regulator’s official website, with feedback invited until October 16, 2026. The consultation process will allow relevant professionals, businesses, creditors and other stakeholders to provide their views before the proposed qualification framework moves to the next stage.
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