The Securities and Exchange Commission of Pakistan (SECP), the federal body that oversees companies, has placed 39,704 firms under the status “Inactive by Registrar”. The step follows four years in which those entities did not submit annual returns and, where needed, financial statements. The SECP announced the action on Saturday.
Officials said the inactive label should make the national company database easier to trust and lower the chance that idle entities are abused. Banks and other counterparties will see the status in the SECP’s systems.
What inactive status means for firms
Until overdue filings are lodged and active standing is restored, the affected companies cannot open fresh bank accounts. They also cannot use financial services or record changes among their directors. The SECP framed the restriction as temporary for any firm willing to complete its paperwork.
Annual returns—and financial statements where the law requires them—are obligations under the Companies Act, 2017, Pakistan’s main company law. Those papers keep public details on ownership and management current. The SECP warned that long gaps in filing weaken the register and can complicate work against money laundering and terrorist financing.
Where the inactive firms are listed
City totals released by the SECP show Lahore with 13,927 inactive companies and Islamabad with 13,859. Karachi accounts for 4,868, Peshawar for 2,031 and Multan for 1,861. Faisalabad has 1,384, Gilgit 1,102, Quetta 436 and Sukkur 236.
Registry growth and the chairman’s message
Despite the inactive markings, the SECP said the overall register is still expanding. Pakistan counted 317,002 registered companies at the end of September 2026. In the previous financial year the commission incorporated 43,559 new companies—24 per cent higher than the year before. Name reservation and incorporation are fully digital, and 99.9 per cent of new companies are registered online, according to the SECP.
Chairman Dr Kabir Ahmed Sidhu said a clean, credible registry is “the bedrock of trust” in the corporate sector. He added that the SECP is guarding the integrity of the financial system while offering firms a clear path back into compliance.
Aasan alfaaz mein
SECP ne 39,704 companies ko inactive kar diya hai kyunke unhon ne char saal returns ya accounts file nahi kiye. In companies ke liye naye bank account khulna aur financial services lena ab mumkin nahi, jab tak papers complete na hon. Lahore aur Islamabad mein sab se zyada aisi companies hain. Jo companies filings kar dein, woh dobara active ho sakti hain.
