The Securities and Exchange Commission of Pakistan (SECP) has proposed 183 key amendments to the Companies Act, 2017, aiming to reduce regulatory hurdles and improve the ease of doing business in Pakistan. The proposed changes were introduced on Tuesday, with the goal of streamlining compliance processes and enhancing business efficiency.
To address the evolving dynamics of the corporate sector, the SECP, in collaboration with the Board of Investment (BoI), formed a committee to review and recommend changes to the Companies Act. The committee adopted a comprehensive approach, taking into account international best practices, feedback from stakeholders, operational challenges, and SECP’s digitalisation initiative, Leading Efficiency through Automation Prowess (LEAP).
The proposed amendments focus on reducing the regulatory burden on businesses, promoting digitalisation, enhancing corporatisation, and eliminating redundancies in existing legislation. Key changes include improving transparency in company operations, clarifying the responsibilities of company officials, and introducing more efficient enforcement measures.
The reforms are designed to foster a business-friendly environment by removing unnecessary regulatory barriers, promoting innovation, and ensuring robust compliance and governance standards. SECP aims to instill a culture of transparency and accountability within the corporate ecosystem, which will, in turn, boost investor confidence and corporate growth.
The proposed amendments also include measures to streamline compliance, simplify reporting obligations, and adopt global corporate governance principles. They will encourage the use of technology by facilitating electronic filing, record-keeping, and remote participation in corporate meetings. Furthermore, the amendments advocate for a shift from penal sanctions to regulatory remedies and pecuniary penalties, aligning with international best practices.
SECP highlighted that these amendments are part of a forward-looking strategy to ensure that Pakistan’s corporate regulatory framework remains relevant and robust, positioning the country as a competitive and business-friendly destination for investment and corporate activity.
