ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), Tuesday, informed the Senate Standing Committee on Finance that listed companies are required to duly comply with the corporate social responsibility (CSR) requirements in the country.
The SECP officials informed Senate Standing Committee on Finance Tuesday that the SECP has given responsibility to the Boards of the listed companies to deal with Environmental, Social, and Governance (ESG) considerations and Gender Equality and Diversity and Inclusion (DE&I).
Senate Standing Committee on Finance, Tuesday, also sought comments of NGOs on “The Corporate Social Responsibility Bill 2025”to provide for the corporate social responsibility for companies, banks, and SOEs (State-owned enterprises) with matters arising out of or connected therewith.
Only listed cos required to comply with CSR requirements: ex-CJP
The sub-committee, headed by Dr Mirza Ikhtiar Baig, MNA, reviewed the private members bill introduced by Dr Nafisa Shah, MNA, by inviting experts and stakeholders.
The SECP officials informed about the CSR reforms undertaken by the SECP including CSR reporting guidelines, integration of CSR into Code of Corporate Governance as well as capacity building and awareness programs to educate companies on CSR.
The SECP officials added that they aim to build a strong and growing corporate sector that is attractive to both domestic and foreign investors, ensuring economic stability.
The committee assessed the implications and potential impact of the legislation based on their findings.
MNA Ali Sarfraz recommended constitution of a separate government department for regulating/spending the funding of the CSR. Till a federal department is not constituted, there are apprehensions of wastage of CRS funds. The government needs to issue guidelines after collection of CRS funds.
Among stakeholders, CEO of a company disclosed that it is a wrong impression that the corporate sector is earning huge profits. All chambers are spending reasonable amount of funds on CSR activities. The family NGOs are reregistered as per government rules/regulations. Through family NGOs, funds are allocated to poor segments of the society.
Under the proposed law, every company excluding the non-profit, or charitable companies, incorporated under the provisions of the Companies Act, with a turnover of more than Rs1 billion shall earmark not less than one percent of its net profit which shall be spent for activities or projects relating to corporate social responsibility as provided in the Schedule under the provisions of this Act. Provided that companies with less turnover shall follow the guidelines issued by the SECP.
The Board of Directors of the company shall ensure that the company shall spend the amount earmarked under sub-section (l), of this section in pursuance of its Corporate Social Responsibility Policy.
Copyright Business Recorder, 2025
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