SECP Declares 39,704 Companies Inactive Amid Corporate Growth in Pakistan

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has officially marked 39,704 companies as ‘inactive’ due to their failure to submit annual returns and financial statements for a consecutive four-year period. This unprecedented move aims to enhance the reliability of the corporate register and curb the misuse of dormant companies.

In a bid to streamline the corporate landscape, the SECP has taken this step following a notable increase in registered firms, which now totals 317,002 as of September 30. The commission registered 43,559 new companies in FY26, reflecting a 24% increase from the previous year. Chairman SECP Dr Kabir Ahmed Sidhu emphasized that a clean and credible registry is essential for fostering trust within the corporate sector.

This initiative not only strengthens the integrity of Pakistan’s financial system but also provides companies with a clear pathway to return to compliance. The inactive status will be visible in the SECP’s system, impacting banks and other stakeholders who rely on accurate corporate information.

Looking ahead, the SECP plans to continue its efforts in maintaining an efficient corporate environment, encouraging compliance among businesses while ensuring that the corporate register remains a trustworthy resource for all stakeholders.