CSR Bill 2026 pending before NA, SECP tells NA’s body on finance and revenue

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Thursday informed the National Assembly Standing Committee on Finance and Revenue that the Corporate Social Responsibility Bill, 2026, is currently pending before the National Assembly for voting after being passed by the Senate with some amendments.

Briefing the committee on the Corporate Social Responsibility Bill, 2026, the SECP Commissioner informed that upon enactment of the legislation, the SECP would undertake the necessary regulatory and implementation measures in accordance with the provisions of the Bill.

The committee was informed that the Corporate Social Responsibility Bill, 2026 will provide a statutory framework for Corporate Social Responsibility (CSR) activities undertaken by profit-making companies operating in Pakistan.

The SECP officials stated that, at present, CSR practices of companies vary significantly, resulting in inconsistent disclosure, weak alignment with national development priorities, and limited oversight of funds spent in the name of community welfare.

The proposed legislation, therefore, seeks to introduce a uniform legal structure to ensure transparency, accountability and effective contribution by the corporate sector towards social and economic development.

According to the SECP officials, the Bill would apply to listed companies and non-listed large-sized companies, as defined in the Third Schedule to the Companies Act, 2017. Not-for-profit companies would remain outside the scope of the proposed legislation.

The proposed framework encourages covered companies to spend at least one percent of their net profit after tax on CSR activities. However, the SECP officials clarified that the actual expenditure on CSR would remain voluntary under the Bill.

The legislation would nevertheless disclose CSR activities mandatory for companies falling within its ambit. Companies would also be required to formulate a CSR policy for approval by the company and undertake CSR activities in the areas specified in the Schedule to the Bill.

The SECP Commissioner informed the committee that the Bill was passed by the National Assembly on 21 January 2026 and was subsequently referred to the Senate of Pakistan.

“The Senate Standing Committee considered the legislation and suggested further changes. Thereafter, the revised Bill, incorporating further amendments, was passed by the Senate on 11 May 2026”, officials said.

In terms of Article 70(2) of the Constitution of Pakistan, the amended Bill was subsequently transmitted back to the National Assembly Secretariat for consideration and passage.

The SECP told the committee that the Bill is currently pending voting in the National Assembly and, therefore, its statutory implementation has not yet commenced.

The proposed CSR framework is intended to bring greater consistency to corporate social investment by establishing a statutory mechanism for disclosure, policy formulation and implementation of CSR activities, while retaining the voluntary nature of actual CSR spending.

The development comes as Parliament considers a formal legislative framework for CSR in Pakistan, with the proposed law seeking to strengthen transparency and accountability in corporate contributions towards community welfare and broader social and economic development.

The parliamentary record also confirms that the CSR legislation was originally introduced as a private member’s bill and subsequently moved through the parliamentary process.

Copyright Business Recorder, 2026