The Securities and Exchange Commission of Pakistan (SECP) has marked 39,704 companies “Inactive by Registrar” over four years of missing filings. The action restricts their access to banking and financial services until they restore compliance.
The regulator announced the decision on Saturday after the companies failed to submit annual returns and/or financial statements. It said the move would improve the corporate register’s reliability and help prevent misuse of dormant companies.
“The inactive status will appear in the SECP’s system and be visible to banks and other stakeholders. These companies will not be able to open new bank accounts until they file their overdue documents with the SECP and regain active status. They will also be unable to access financial services or register changes in their directors,” its statement read.
Lahore accounted for the largest number of inactive companies, with 13,927, followed closely by Islamabad with 13,859. Karachi recorded 4,868 companies, while Peshawar had 2,031 and Multan 1,861.
The remaining companies included 1,384 in Faisalabad, 1,102 in Gilgit, 436 in Quetta and 236 in Sukkur. Together, Lahore and Islamabad accounted for 27,786 companies, almost 70% of the total affected by the action.
The Companies Act, 2017 requires companies to file annual returns and, where applicable, financial statements. These documents keep public records of company ownership and management current.
SECP’s published guidance explains that an annual return provides a snapshot of a company’s information. This includes its registered office, members, share capital and key officers. The guidance identifies Section 130 of the Act as the legal basis for annual returns.
“Prolonged non-filing weakens the corporate register and can hinder efforts to prevent money laundering and terrorist financing,” the SECP said.
The enforcement action comes as Pakistan’s corporate register continues to expand. The affected companies represent approximately 12.5% of the 317,002 companies registered by the end of September 2026.
“The corporate register continues to grow. Pakistan had 317,002 registered companies at the end of September 2026. The SECP registered 43,559 new companies in the previous financial year, 24% more than the year before. Company name reservation and incorporation are now fully digital, and 99.9% of new companies are registered online.”
The figures highlight the scale of the regulator’s task as new registrations increase alongside efforts to address prolonged non-compliance. Companies covered by the action must submit their overdue documents and regain active status to remove the stated restrictions.
“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,” SECP Chairman Dr Kabir Ahmed Sidhu said.
