SECP proposes major amendments to Companies Act, 2017, looks to boost ease of doing business

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Tuesday proposed 183 major amendments to the Companies Act, 2017 to reduce regulatory burden on companies and improve the ease of doing business in Pakistan by streamlining the process of regulatory compliances.

According to details of the proposed amendments drafted by the SECP, in response to these evolving dynamics, the Securities and Exchange Commission of Pakistan (SECP) and Board of Investment (BoI) constituted a committee to review and recommend amendments to the Act.

The committee adopted a holistic approach, considering factors such as international best practices, feedback from stakeholders, operational challenges, and the alignment of legislation with SECP’s digitalisation initiative, Leading Efficiency through Automation Prowess (LEAP).

READ MORE: Govt panel proposes major changes to Companies Act 2017

The proposed amendments inter alia aim to achieve several key objectives, including reducing the regulatory burden on businesses, enhancing ease of doing business through improved efficiency, increasing digitalisation, promoting corporatisation, and eliminating ambiguities and redundancies in existing legislation. These reforms also emphasised increased transparency in internal company processes and dealings with the SECP, clearer responsibilities and heightened accountability for key company officials, and swifter enforcement measures.

Collectively, these measures are designed to ensure that the Companies Act, 2017 becomes a catalyst for business growth by reducing unnecessary regulatory hurdles, streamlining processes, and fostering an environment conducive to entrepreneurship and innovation.

At the same time, it aims to instil a culture of compliance, governance, and transparency that strengthens trust and confidence within the corporate ecosystem.

By prioritising the needs of businesses while maintaining robust oversight, these reforms seek to enable companies to thrive in a competitive and rapidly evolving economic landscape, SECP concept paper said.

The proposed amendments to the Companies Act are a forward-looking initiative designed to ensure that Pakistan’s corporate regulatory framework remains relevant, robust, and conducive to growth.

By addressing emerging challenges and incorporating global best practices, these reforms aim to position Pakistan as a competitive, transparent, and business-friendly destination for corporate activity, the SECP added.

The SECP highlighted that the scope of these amendments is expected to be comprehensive, touching upon various aspects of corporate functioning and addressing the practical difficulties being faced by companies.

The amendments would cover areas of Ease of Doing Business; streamlining regulatory compliance processes for development of corporate sector; reducing administrative burdens on companies to facilitate corporatisation; simplified compliance requirements and reduced reporting obligations.

The amendments would also cover principles of corporate governance including adopting globally recognised corporate governance principles; bringing proportionality in applicability of financial audit and filing of financial statement with size of company.

The promotion of digitalisation and use of technology would be encouraging electronic filing and record-keeping, facilitating remote participation in corporate meetings and enhancing digital means for maintenance of account and data protection measures.

The amendments relating to the decriminalisation would shift from penal sanctions to regulatory remedies /pecuniary penalties, promote business confidence and compliance and align with global best practice, SECP’s concept paper added.

Copyright Business Recorder, 2026