SECP eases licensing process for cos with foreign sponsors
Pakistan's SECP has streamlined foreign company licensing by removing prior security clearance for directors, aiming to boost investment and ease business by shortening approval times.
- SECP's streamlined licensing for foreign-sponsored companies.
- Removing prior security clearance for foreign directors.
- Boosting foreign investment and ease of doing business.
In a bid to improve Pakistan’s investment climate, the Securities and Exchange Commission of Pakistan (SECP) has streamlined the licensing process for companies with foreign sponsors by removing the requirement of prior security clearance for foreign directors at the application stage, a move aimed at reducing delays and encouraging foreign investment.
According to the regulator, licensing applications will now be processed on the basis of affidavits submitted by directors, eliminating the need to obtain security clearance before a license can be issued.
However, the appointment of foreign directors will remain subject to security clearance from the relevant authorities. In cases where clearance is denied, the company will be required to nominate a replacement director.
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The SECP said the measure is expected to significantly improve the ease of doing business by shortening licensing timelines, particularly in sectors such as capital markets, non-banking finance, insurance, and other financial services.
The regulator noted that the security clearance process had long been considered a major obstacle for investors due to the time required for approvals.
SECP Chairman Kabir Sadhu said the reform strikes a balance between facilitating investment and maintaining effective regulatory oversight.
“This step establishes a balance between facilitating investors and ensuring effective regulatory oversight,” Sadhu said, adding that full compliance with national laws and security requirements would continue to be ensured.
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