Pakistan regulator marks 39,704 companies inactive

The Securities and Exchange Commission of Pakistan (SECP) has declared 39,704 companies inactive for failing to submit mandatory annual returns or financial statements for four consecutive years. This regulatory action aims to improve the transparency and reliability of the national corporate registry while preventing dormant entities from being used for unlawful financial activities.

Under the new classification, “Inactive by Registrar,” affected businesses face significant operational restrictions. These companies are prohibited from opening new bank accounts, and their existing accounts will be frozen. Additionally, they will be unable to access various financial services or register changes to their boards of directors until they file all overdue documents and regain active status.

The crackdown affects various regions, with the highest numbers of inactive firms located in Lahore, Islamabad, and Karachi. The SECP noted that making this status visible to banks and other stakeholders is a key step in ensuring the corporate register remains credible.