39,704 firms declared ‘inactive’
ISLAMABAD: For the first time, the Securities and Exchange Commission of Pakistan (SECP) has marked 39,704 companies “inactive by registrar” for failing to file annual returns and/or financial statements for four years. Encouraged by the increase in registered firms, the SECP has used the clause to gradually remove inactive companies. The corporate register continues to grow. Pakistan had 317,002…
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has for the first time declared 39,704 companies "inactive by registrar" due to their failure to submit annual returns and/or financial statements for four consecutive years, a move aimed at maintaining a reliable corporate register. The corporate register, which stood at 317,002 registered companies as of September 30, has seen a 24% increase in new registrations in the fiscal year 2026, totaling 43,559 new companies.
The SECP has embraced digital processes, with 99.9% of new companies now registering online. Chairman SECP Dr Kabir Ahmed Sidhu emphasized that a clean and credible registry is essential for trust in the corporate sector, and this initiative aims to safeguard the integrity of the financial system. These inactive companies, spread across major cities including Lahore, Islamabad, Karachi, and Peshawar, will face restrictions on opening new bank accounts, accessing financial services, and registering changes in directors until they file overdue documents and regain their active status.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
