The Securities and Exchange Commission of Pakistan (SECP) has announced limited compliance with the gender pay gap disclosure requirements by listed companies, despite extensive advocacy and engagement efforts.
The annual accounts of listed companies revealed minimal adherence to the directive, the SECP stated in a press release.
In April 2024, SECP issued Circular 10 of 2024, directing the boards of listed companies to disclose gender pay gap data in their annual reports and on their websites, effective from June 30, 2024. The directive aligns with the Prime Minister’s Women Empowerment Package (PM-WEP) 2024.
To encourage compliance, the SECP utilised social media, issued notices to listed companies, and disseminated reminders through the Pakistan Stock Exchange (PSX) via notice PSX/N-1140 dated November 26, 2024. A suggested format and calculation method for disclosures were also provided along with the circular.
Additionally, the SECP organised an advocacy session in collaboration with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to emphasise the importance of gender pay gap disclosure and to promote gender-inclusive practices among businesses.
The SECP has urged listed companies to comply fully with the disclosure requirements and to include gender pay gap data in their annual reports and on their websites. It warned that failure to comply may result in enforcement actions against non-compliant companies.
The SECP reaffirmed its commitment to promoting transparency, advancing gender equality, and facilitating the implementation of the PM-WEP 2024 to foster a more gender-inclusive business environment in Pakistan.
