SECP cracks down on state-owned companies over compliance failures

MG News | March 17, 2026 at 11:51 AM GMT+05:00

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March 17, 2026 (MLN): In a major move to improve governance in state-owned enterprises, the Securities and Exchange Commission of Pakistan (SECP) has initiated strict regulatory action against dozens of public sector companies for violations of company law.

According to a press release issued, 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.

	SOE Name	Section 130 Non-Filing of Annual Returns	Section 233 Non-Submission of Annual Accounts	Section 132 Non-holding of AGM
1	POSTAL LIFE INSURANCE COMPANY LIMITED	Yes	Yes	No
2	PAK LIBYA HOLDING COMPANY (PVT) LIMITED	Yes	Yes	No
3	ENERGY CONSERVATION FUND	Yes	Yes	No
4	DEVOLUTION TRUST FOR COMMUNITY EMPOWERMENT	Yes	Yes	No
5	FEDERAL LIVER TRANSPLANT ENDOWMENT FUND	Yes	Yes	No
6	PAKISTAN GEMS AND JEWELLERY DEVELOPMENT COMPANY	Yes	Yes	No
7	KARACHI GARMENT CITY COMPANY	Yes	Yes	No
8	WAPDA ENDOWMENT FUND FOR SPORTS	No	No	Yes
9	FISHERIES DEVELOPMENT BOARD	Yes	Yes	No
10	NATIONAL DISASTER RISK MANAGEMENT FUND	Yes	Yes	No
11	PHA FOUNDATION	Yes	Yes	No
12	FEDERAL GOVERNMENT EMPLOYEES HOUSING FOUNDATION	Yes	Yes	No
13	OVERSEAS PAKISTANIS FOUNDATION	Yes	Yes	No
14	PAKISTAN STEEL MILLS CORPORATION (PRIVATE) LIMITED	Yes	Yes	No
15	PEOPLES STEEL MILLS LIMITED	Yes	Yes	No
16	KARACHI URBAN TRANSPORT CORPORATION LIMITED	Yes	Yes	No
17	PAKISTAN TEXTILE CITY LIMITED	Yes	Yes	No
18	SUKKUR ELECTRIC POWER COMPANY LIMITED	No	Yes	No
19	GENCO HOLDING COMPANY LIMITED	No	Yes	No
20	OVERSEAS EMPLOYMENT CORPORATION (PVT.) LIMITED	Yes	Yes	No
21	PAKISTAN MINERAL DEVELOPMENT CORPORATION	Yes	Yes	No
22	PAKISTAN RAILWAY ADVISORY & CONSULTANCY SERVICES LIMITED	Yes	Yes	No
23	PAKISTAN REVENUE AUTOMATION (PRIVATE) LIMITED	Yes	Yes	No
24	PAKISTAN TELEVISION CORPORATION LIMITED	No	Yes	No
25	PAKISTAN TOURISM DEVELOPMENT CORPORATION Ltd.	No	Yes	No
26	PRINTING CORPORATION OF PAKISTAN (PRIVATE) Ltd.	Yes	Yes	No
27	RAILWAY CONSTRUCTIONS PAKISTAN LIMITED	Yes	Yes	No
28	STATE ENGINEERING CORPORATION (PRIVATE) LIMITED	Yes	Yes	No
29	TELEPHONE INDUSTRIES OF PAKISTAN (PVT.) LIMITED	No	Yes	No
30	UTILITY STORES CORPORATION OF PAKISTAN	No	Yes	No
31	TRIBAL AREAS ELECTRIC SUPPLY COMPANY LIMITED	No	No	Yes
32	LAKHRA POWER GENERATION COMPANY LIMITED	No	No	Yes
33	HYDERABAD ELECTRIC SUPPLY COMPANY LIMITED	No	Yes	No
34	QUETTA ELECTRIC SUPPLY COMPANY LIMITED	No	Yes	No
35	NATIONAL TRANSMISSION AND DESPATCH COMPANY	No	No	Yes
36	JAMSHORO POWER COMPANY LIMITED	Yes	Yes	No
37	INDIGENOUS RESEARCH AND DEVELOPMENT AGENCY (IRADA) (PRIVATE) LIMITED	Yes	Yes	No
38	GUJRANWALA ELECTRIC POWER COMPANY LIMITED	No	No	Yes
39	NATIONAL ENGINEERING SERVICES PAKISTAN (PRIVATE) LIMITED	No	No	Yes
40	SAINDAK METALS LIMITED	Yes	No	No
41	POWER PLANNING & MONITORING COMPANY (PVT.) LTD.	No	No	Yes

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.

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