ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has designated 39,704 companies as “Inactive by Registrar” following their failure to submit annual returns or financial statements for a period of four years. This move aims to enhance the reliability of the corporate register and prevent the misuse of dormant companies.
According to Securities and Exchange Commission of Pakistan, the inactive status will be recorded in its system and will be visible to banks and other stakeholders. Companies marked as inactive will face restrictions, including the inability to open new bank accounts or access financial services until they submit the overdue documents necessary to regain active status. Additionally, these companies will not be allowed to register changes in their directors.
The breakdown of inactive companies includes 13,927 in Lahore, 13,859 in Islamabad, 4,868 in Karachi, 2,031 in Peshawar, 1,861 in Multan, 1,384 in Faisalabad, 1,102 in Gilgit, 436 in Quetta, and 236 in Sukkur. Filing annual returns and, where required, financial statements is mandated by the Companies Act, 2017, to maintain up-to-date public information regarding company ownership and management. The SECP emphasized that prolonged non-filing undermines the corporate register and can impede efforts to combat money laundering and terrorist financing.
Despite the challenges, the corporate register continues to expand. As of the end of September 2026, Pakistan had 317,002 registered companies. The SECP reported the registration of 43,559 new companies in the last financial year, marking a 24 percent increase from the previous year. The processes of company name reservation and incorporation have transitioned to a fully digital format, with 99.9 percent of new companies being registered online.
SECP Chairman Dr. Kabir Ahmed Sidhu remarked that maintaining a clean and credible registry is essential for trust in the corporate sector, highlighting the SECP’s commitment to protecting the integrity of the financial system while offering companies the opportunity to return to compliance.