SECP urges firms to formalise as regulator rolls out easier compliance framework

The Securities and Exchange Commission of Pakistan (SECP) on Monday renewed its push for greater business formalisation, encouraging enterprises across the country to adopt the corporate structure to improve governance standards, enhance transparency and gain wider access to investment and financing.

During an interaction with the business community at the Sialkot Chamber of Commerce and Industry, SECP Commissioner Muzzafar Ahmed Mirza said the regulator was making incorporation more accessible by simplifying regulatory processes, reducing compliance requirements and expanding its digital services.

He said the shift towards corporatisation would strengthen the long term sustainability of businesses, particularly family-owned enterprises, by improving institutional credibility, introducing stronger governance frameworks and creating opportunities to tap formal sources of finance and future investment.

Speaking separately at the event, SECP Commissioner Muhammad Ali Farid Khwaja highlighted the importance of broadening Pakistan's investment culture, urging entrepreneurs and young investors to participate in the capital market through informed investment decisions. He said greater domestic participation would reinforce financial markets, encourage wealth creation and contribute to the country's overall economic development.

The commissioners said the SECP would continue pursuing reforms aimed at building a transparent and digitally driven corporate sector while creating an environment that encourages businesses and investors to play a larger role in Pakistan's economic growth.