SECP trains SOE, Privatization Teams on restructuring rules

November 17, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has begun formally training officials from the Privatization Commission and state-owned enterprises (SOEs) on the regulatory process for mergers, amalgamations and corporate restructuring, as the government moves ahead with reforms aimed at overhauling loss-making public-sector entities.

Nearly 50 senior officers from 24 SOEs attended the session held at SECP’s head office in Islamabad, where regulators outlined compliance steps and documentation standards required under Schemes of Arrangement.

The briefing covered procedures under the Companies Act, 2017, the Corporate Rehabilitation Act, 2018, and the Corporate Restructuring Companies Act, 2016 laws increasingly relevant as the government explores restructuring options for struggling industrial units.

SECP officials detailed how the regulator evaluates restructuring proposals and the typical regulatory hurdles departments face during mergers or amalgamations. Participants discussed case-based challenges, including how schemes are sanctioned, timelines involved, and the operational issues that arise when restructuring large SOEs.

The session also highlighted the growing push to revive sick industrial units through alternative legal mechanisms, a move that could influence future privatization decisions and corporate governance practices in Pakistan’s public-sector entities.

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