SECP Freezes Bank Accounts of Nearly 40,000 Companies Over Missed Filings - ProPakistani
The Securities and Exchange Commission of Pakistan (SECP) has declared 39,704 companies inactive after they failed to submit their annual returns and/or financial statements for four years. The companies will face restrictions on banking and financial services until they complete their outstanding filings.
The regulator said the move is aimed at improving the reliability of Pakistan’s corporate register and preventing the misuse of inactive companies.
Under the restrictions, inactive companies will not be allowed to open new bank accounts, while their existing accounts will remain frozen until the required filings are completed. They will also be unable to access financial services during their inactive status.
The SECP said companies seeking to regain active status must submit all outstanding filings. During the inactive period, changes to the companies’ directors will not be registered.
The regulator said the action would help prevent inactive companies from being misused and strengthen the integrity of the corporate register.
Lahore had the highest number of companies declared inactive, with 13,927, followed by Islamabad with 13,859.
The SECP’s city-wise figures also included 4,868 companies in Karachi, 2,031 in Peshawar and 1,861 in Multan. Faisalabad had 1,384 inactive companies, while 1,102 were in Gilgit, 436 in Quetta and 236 in Sukkur.
SECP Chairman Dr. Kabir Ahmed Sidhu said a transparent and reliable corporate register was the foundation of business confidence.
He said separating inactive companies from the register was important for protecting the financial system, adding that companies could regain active status by fulfilling their legal requirements.
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All of those companies haven’t even earn a single rupee, that is why they are inactive. This shows the busines condition in Pakistan.
