ISLAMABAD – Securities and Exchange Commission of Pakistan (SECP) announced 183 major proposed amendments to the Companies Act, 2017 to dramatically reduce regulatory hurdles, streamline compliance, and boost the ease of doing business, positioning Pakistan as a competitive, transparent, and business-friendly destination.
The comprehensive overhaul comes after committee jointly formed by SECP and the Board of Investment (BoI) conducted a thorough review of the Act. Their recommendations were guided by international best practices, extensive stakeholder feedback, real-world operational challenges, and the SECP’s cutting-edge digitalisation program, LEAP (Leading Efficiency through Automation Prowess).
The proposed amendments target multiple fronts. They seek to simplify regulatory compliance, cut administrative burdens, encourage corporatisation, and remove ambiguities and redundancies in existing legislation. At the same time, they emphasize greater transparency in company operations, clearer accountability for key officials, and faster enforcement mechanisms, ensuring a robust yet business-friendly regulatory environment.
Corporate governance reforms are also a highlight, introducing globally recognized principles, proportional financial audit and reporting requirements based on company size, and enhanced digital solutions for e-filing, remote meetings, record-keeping, and data protection. Furthermore, the amendments propose decriminalizing certain offenses by replacing penal sanctions with regulatory fines, a move expected to boost business confidence and promote voluntary compliance.
According to SECP, these reforms are designed to make the Companies Act, 2017 a catalyst for entrepreneurship, innovation, and sustainable business growth. By prioritizing business facilitation while maintaining strong oversight, the changes aim to foster an ecosystem where companies can thrive in a rapidly evolving and competitive economy.
In short, the SECP’s ambitious proposal marks a new era for corporate regulation in Pakistan, combining forward-looking legislation with global best practices to ensure the country remains a magnet for investment, transparency, and corporate excellence.
