SECP reports surge in company registrations, foreign investment after reforms

Pakistan’s Securities and Exchange Commission (SECP) reported strong growth in company registrations, foreign investment, digitization and compliance during February-April 2026 following reforms introduced by its new management.

As part of efforts to modernize Pakistan’s corporate sector, the SECP focused on faster processing of incorporation and licensing applications, improving guidance for companies on regulatory requirements, and strengthening the department through workforce expansion.

The SECP registered 10,511 new companies from February to April 2026, a 21% increase from 8,693 companies incorporated during the same period last year. Of the total, 4,082 companies were incorporated in April alone, the highest monthly incorporation figure recorded by the regulator.

According to SECP data, investors from more than 22 countries registered companies in Pakistan during the period. Around 220 companies were registered with foreign shareholders, with cumulative paid-up capital of PKR 882 million, compared with PKR 277 million during the corresponding period last year, an increase of about 218%.

Foreign investment remained concentrated in the trading, services, information technology, construction and mining sectors. Chinese investors remained among the leading foreign participants in newly incorporated companies.

The SECP also reported strong growth in compliance filings amid intensified enforcement measures. During the period, the corporate registry received 61,960 returns, compared with 38,326 returns filed during the same period last year, an increase of 61%.

The SECP launched a comprehensive compliance campaign to encourage and facilitate companies in filing statutory returns, with a special focus on Ultimate Beneficial Ownership compliance requirements.

In another key development, the SECP issued a notification for the replacement of physical shares with book-entry form on a share transaction basis to promote digitization and transparency in the corporate sector. The SECP also signed memorandums of understanding with Askari Bank and NayaPay to facilitate swift bank account openings for newly incorporated companies.

As part of its expansion strategy, the SECP plans to establish Business Facilitation Centres in Islamabad, Karachi, Lahore, Sialkot and Faisalabad to improve access to corporate services.

Going forward, the SECP plans to further automate company registration through AI-enabled name reservation, automated Form-A registration, digital compliance monitoring and additional ease-of-doing-business reforms.