Nearly 40,000 businesses have been categorized as inactive by the Securities and Exchange Commission of Pakistan following missed submissions of financial statements and annual returns spanning four years, totaling 39,704 entities. These companies now face blocks on financial and banking operations until all delayed documents are submitted.
According to the regulatory body, this decision works to clean up the national corporate register and block dormant entities from fraudulent use.
These restrictions block affected companies from opening fresh bank accounts, while current accounts stay locked until pending paperwork is filed. Financial services remain entirely unavailable during this dormant period.
Inactive Companies Must Complete Filings to Reactivate
Businesses wanting to restore their active standing must file all overdue documents, as stated by the SECP. Furthermore, companies cannot register changes to their boards of directors while flagged as inactive.
The agency explained that this enforcement protects the corporate register and stops bad actors from exploiting dormant entities.
Lahore and Islamabad Account for Most Inactive Companies
Among all cities, Lahore recorded the greatest count of dormant businesses with 13,927, closely followed by Islamabad with 13,859.
Additional totals released by the SECP show 4,8,68 businesses in Karachi, 2,031 in Peshawar, and 1,861 in Multan. Faisalabad contained 1,384 dormant entities, Gilgit had 1,102, Quetta registered 436, and Sukkur recorded 236.
SECP Chairman Dr. Kabir Ahmed Sidhu stated that market confidence relies entirely upon a dependable corporate register.
Isolating dormant businesses shields the wider financial system, and entities can restore active status simply by satisfying legal duties, he added.
