Members of the Association of Builders and Developers of Pakistan (ABAD) are considering converting their businesses into corporate entities and registering Real Estate Investment Trusts (REITs) following an awareness session conducted by the Securities and Exchange Commission of Pakistan (SECP).
The session was held at ABAD’s head office in Karachi and focused on the benefits of business incorporation, regulatory reforms and opportunities available to real estate businesses through formal corporate structures.
SECP Commissioner Muzzafar Ahmed Mirza led the commission’s delegation at the session. ABAD Chairman Mohammed Hassan Bakshi, Senior Vice Chairman Syed Afzal Hameed, Vice Chairman Tariq Aziz Memon and representatives of the builder and developer community also attended.
Mirza briefed participants on SECP reforms aimed at simplifying business incorporation, improving regulatory clarity and encouraging informal businesses and partnerships to transition towards formal corporate structures.
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He explained that incorporation establishes a separate legal entity and generally limits shareholders’ liability, helping distinguish a company’s obligations from the personal assets of its members.
SECP officials, including Karachi Company Registration Office Incharge Sidney Custodio Pereira, demonstrated the eZfile platform and explained how digital integration with external registries has made company incorporation and corporate filings faster and more accessible.
The session also highlighted the potential advantages of adopting a corporate structure, including improved access to financing and domestic and international markets, greater business credibility, increased transparency and stronger continuity.
ABAD’s leadership welcomed the SECP’s outreach and said its members were actively considering corporatization and REIT registration as potential avenues for strengthening their businesses.
The association also agreed to coordinate with the SECP and submit recommendations related to the real estate sector under the Companies Act, 2017, with the aim of supporting a more conducive regulatory environment for builders and developers.
The engagement reflects growing interest within Pakistan’s real estate sector in formal corporate structures and investment mechanisms that could broaden access to capital while strengthening transparency and governance.
