Islamabad (Commerce Desk): The Securities and Exchange Commission of Pakistan (SECP) has declared 39,704 companies inactive for failing to submit their annual returns and financial statements for 4 years, restricting their access to financial services.
According to the SECP, inactive companies will not be allowed to open new bank accounts, while their existing accounts will remain frozen until all outstanding filings are completed. During this period, these companies will be unable to access financial services, and changes to their directors will not be registered.
The inactive companies include 13,927 in Lahore, 13,859 in Islamabad, 4,868 in Karachi, 2,031 in Peshawar and 1,861 in Multan.
Similarly, 1,384 companies in Faisalabad, 1,102 in Gilgit, 436 in Quetta and 236 in Sukkur have also been declared inactive.
According to the SECP, the purpose of this measure is to make the corporate register more reliable and prevent the misuse of inactive companies.
SECP Chairman Dr Kabir Sidhu said that a transparent and reliable corporate register is the foundation of business confidence, while separating inactive companies is important for protecting the financial system. He added that companies can regain their active status by fulfilling their legal requirements.