The Securities and Exchange Commission of Pakistan (SECP) has completed drafting an extensive reform package proposing 183 amendments to the Companies Act, 2017, aimed at reducing regulatory complexity, improving compliance efficiency, and strengthening the country’s corporate operating environment.

The initiative follows a joint review conducted by the SECP and Board of Investment (BoI), where a dedicated committee evaluated existing legal bottlenecks, stakeholder feedback, international frameworks, and operational constraints. The effort is also tied to the SECP’s digital transformation programme, LEAP (Leading Efficiency through Automation Prowess).

According to the draft proposals, the amendments seek to lighten regulatory burdens, simplify reporting and governance obligations, remove duplication in legal provisions, and expand the use of digital processes in corporate administration. The revised framework also aims to reinforce transparency, clarify responsibilities of corporate officers, and enable faster regulatory enforcement where required.

The SECP views the reform package as a shift toward a more facilitative corporate regime—one that encourages entrepreneurship, investment and corporatization rather than adding procedural hurdles. By embedding paperless processes and risk-proportionate regulation, the regulator expects stronger compliance culture and improved ease of doing business.

The draft highlights several core thematic areas, including:

Ease of Doing Business: Streamlined filings, simplified workflows, reduced paperwork, and moderated compliance requirements for smaller companies.

Corporate Governance: Tailored governance standards based on company profiles, strengthened accountability mechanisms, and alignment with international practices.

Digitalization: Broader use of electronic filings, digital recordkeeping, remote participation in meetings, and enhanced data management and protection norms.

Decriminalisation: Replacement of criminal penalties with financial or regulatory sanctions where appropriate, improving business confidence and compliance behaviour.

The SECP believes the amendments will modernise Pakistan’s corporate regulatory framework, improve transparency, and enhance competitiveness. Collectively, the reforms are expected to attract investment, support private-sector growth, and ensure that the Companies Act remains relevant in a fast-changing economic environment.