In a major move to improve governance in state-owned enterprises (SOEs), the Securities and Exchange Commission of Pakistan (SECP) has initiated strict regulatory action against different public sector companies for violations of company law, it was reported on Tuesday.
According to details, the SECP has issued 66 notices in total, including show-cause notices to 41 companies, over serious compliance failures.
These actions are part of broader government reforms aimed at strengthening transparency, accountability, and corporate governance in state-owned entities.
The regulator highlighted several key areas of non-compliance. As many as 33 companies failed to submit their annual audited financial statements, while 26 companies did not file their annual returns.
Additionally, 7 companies did not hold their Annual General Meetings (AGMs), a mandatory requirement under company law.
In a concerning revelation, the SECP also noted that four state-owned companies are operating without a Chief Executive Officer (CEO), raising questions about leadership and oversight.
Furthermore, State Life Insurance Corporation has not submitted its financial statements for the year ending December 2024.
The SECP has warned that legal proceedings will follow the issuance of show-cause notices, and penalties will be imposed on companies found guilty of violations.
The names of non-compliant companies will also be made public on the SECP website to ensure transparency and accountability. Corporate governance concerns extend beyond compliance filings.
The SECP revealed that 48 state-owned companies currently have no female representation on their boards, signaling a lack of diversity. In response, the regulator has directed companies to appoint female directors in line with governance best practices.
To ensure sustained oversight, the SECP declared the establishment of a special monitoring wing dedicated to tracking compliance in state-owned enterprises.
The commission also emphasized that it will provide guidance and support to help companies meet regulatory requirements.
This sweeping action marks one of the most significant regulatory crackdowns in recent years, signaling the government’s intent to enforce discipline and improve performance across Pakistan’s state-owned corporate sector.
