Pakistan court ruling clears path for TRG founder's return, raises governance concerns

KARACHI: Pakistan’s Supreme Court cleared the way for Zia Chishti, ‌founder of outsourcing and technology firm TRG Pakistan, to regain influence over the company he resigned from five years ago over sexual harassment allegations.

The case could have implications for corporate governance standards in Pakistan, and has attracted attention because of TRG’s ​international footprint, including indirect stakes in AI company Afiniti and Nasdaq-listed customer management firm IBEX.

Shares in ​TRG Pakistan rose as much as 10% on Monday after the decision, triggering a ⁠trading halt on the Pakistan Stock Exchange.

However, analysts shared that TRG Pakistan’s share price increase was fuelled by impressive results announced by IBEX, a portfolio company and subsidiary of TRG.

IBEX saw its net income increase by 27% to $13.3 million during the quarter ending March 31, 2026, compared to $10.5 million. Meanwhile, the company saw its revenue grow by 17% to $164.4 million.

“Our strong results were again anchored by our two performance pillars: driving new wins with key logos and continued market share gains driven by our ability to deliver the highest levels of operational excellence,” said Bob Dechant, IBEX CEO.

Meanwhile, Chishti resigned from TRG-related positions in 2021 after a former Afiniti employee ​accused him during testimony before the US Congress of sexual harassment and assault. Chishti has denied wrongdoing.

Chishti, the ​founder and former chief executive of TRG, said he intended to seek a board seat following the ruling.

“I plan to contest for a seat on the board, and I am hopeful that we get three, possibly four seats on the board,” he ​told Reuters.

He rejected concerns that his return could pose governance or reputational risks.

“The allegations against me have ​repeatedly been proven false, in defamation and litigation in Pakistan and the UK. I don’t perceive any reputation risk,” he said.

“It took ‌me ⁠four years to adequately establish that allegations against me are untrue. That’s all that matters.”

According to a short order released on Monday, the Supreme Court dismissed appeals by TRG Pakistan, Bermuda-based TRG International and shareholder Greentree Holdings against a lower court ruling that cancelled Greentree’s 30% stake in the Pakistan-listed company.

TRG International, in a press release, said ​the ruling would “be a ​significant shift in voting ⁠influence within TRG Pakistan toward Mr. Zia Chishti.”

TRG International warned any renewed association with Chishti could create “serious reputational, governance, commercial, and stakeholder risks” for TRG-related entities.

The dispute stems ​from a 2025 Sindh High Court ruling that found TRG Pakistan’s board had ​improperly used company funds through Bermuda-incorporated Greentree Holdings to acquire shares in the company ahead of board elections, according to a briefing circulated by Chishti’s advisers.

TRG International disputed that characterisation, saying the ruling had cancelled an approximately $90 million investment made ⁠by a ​foreign investor into Pakistan.

The company said “multiple layers of governance and structural ​protections”, including a Bermuda court order placing Chishti’s shares into receivership, would limit his practical influence, and that “a constructive and orderly resolution” ​removing it entirely “would best preserve long-term value for all stakeholders”.

Disclaimer: A board member associated with Business Recorder also serves on the board of TRG. All opinions remain independent.