Business

ISLAMABAD – Securities and Exchange Commission of Pakistan (SECP) registered a record number of 884 companies during the month of April, witnessing an increase of 40 percent as compared to same month of the preceding year.

During the first ten months of the current fiscal year,6,763 new companies were registered. As compared to the corresponding period last year, it represents a growth of 34 percent. The massive increase in a number of new companies is the direct result of various reforms measures introduced by the SECP, particularly the elimination of purchase of third party digital signatures and the introduction of simple and hassle-free CNIC based user ID and PIN system for incorporation and post incorporation activities.

It has also been noted that 77 percent of companies have been registered through eServices (online mode); 60 percent have been incorporated through consultants while entrepreneurs got 40 percent of companies incorporated with the assistance of incorporation and facilitation wings of CROs.

Around 85 percent companies were registered as private limited companies, while around 13 percent companies were registered as single member companies. Two percent of the companies were registered as public unlisted, non-profit associations, trade organisations and foreign companies.

The service sector took the lead with 136 companies, followed by trading with 128. Construction came in third with 124 companies. The other sectors’ share is: IT 89, tourism 57, education 35, food and beverages 24, engineering 22, real estate development 20, transport and fuel and energy 19 each, pharmaceutical and corporate agricultural farming 15 each, power generation and auto allied 12 each, cable and electric goods and communication with 11 each. 135 companies belonged to other sectors. Moreover, 4 foreign companies were also registered by the CROs in Karachi and Lahore.

Foreign investment has been reported in 57 new companies. These companies have foreign investors from, Australia, China, Germany, Italy, Japan, Jordan, South Korea, Kuwait, Netherlands, Norway, Qatar, Saudi Arabia, South Africa, the UK and the US.

During the month, the highest numbers of companies, i.e. 310, were registered at the Company Registration Office (CRO), Islamabad, followed by 258 and 176 companies registered at CRO Lahore and Karachi respectively. The CROs in Peshawar, Multan, Faisalabad, Quetta, Sukkur and Gilgit-Baltistan registered 50, 41, 18, 12, 6 and 13 companies respectively.-Online