The Securities and Exchange Commission of Pakistan (SECP) has marked 39,704 companies as “Inactive by Registrar” after they failed to submit annual returns and/or financial statements for four years.
The regulator said the move would improve the reliability of Pakistan’s corporate register and help prevent dormant companies from being misused for unlawful activities.
The inactive status will appear in the SECP’s system and remain visible to banks and other relevant stakeholders. These companies will not be able to open new bank accounts until they submit their outstanding documents and regain active status.
They will also face restrictions on accessing financial services and registering changes in their directors.
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Lahore and Islamabad Account for Most Inactive Companies
According to the SECP, the inactive companies are distributed across major cities and registration centres as follows:
| City | Inactive companies |
|---|---|
| Lahore | 13,927 |
| Islamabad | 13,859 |
| Karachi | 4,868 |
| Peshawar | 2,031 |
| Multan | 1,861 |
| Faisalabad | 1,384 |
| Gilgit | 1,102 |
| Quetta | 436 |
| Sukkur | 236 |
| Total | 39,704 |
Lahore recorded the highest number of inactive companies, followed closely by Islamabad. Karachi ranked third with 4,868 companies.
Companies Required to Meet Legal Filing Obligations
The SECP said filing annual returns and, where required, financial statements is a legal obligation under the Companies Act, 2017.
These documents help maintain accurate and updated public records about companies, their ownership structures and management.
The regulator warned that prolonged failure to submit required documents weakens the corporate register and can undermine efforts to prevent money laundering and terrorist financing.
Companies marked inactive can restore their status by submitting the overdue documents and meeting the relevant compliance requirements.
Pakistan’s Corporate Sector Continues to Expand
Despite the action against non-filing companies, Pakistan’s corporate register continues to grow.
The country had 317,002 registered companies at the end of September 2026. The SECP registered 43,559 new companies during the previous financial year, representing a 24% increase compared with the year before.
The regulator has also digitised company name reservation and incorporation processes. According to the SECP, 99.9% of newly registered companies now complete their registration online.
SECP Chairman Stresses Corporate Transparency
SECP Chairman Dr. Kabir Ahmed Sidhu said maintaining an accurate and credible corporate register was essential for building confidence in Pakistan’s financial system.
“A clean and credible registry is the bedrock of trust in the corporate sector. SECP is protecting the integrity of the financial system while giving companies a clear opportunity to return to compliance,” he said.
The SECP said the latest action would strengthen corporate transparency while giving affected companies an opportunity to fulfil their legal obligations and regain active status.
