The Securities and Exchange Commission of Pakistan (SECP) has rolled out a comprehensive fee relief initiative aimed at encouraging unlisted companies to transition from physical share certificates to a fully digital format. This strategic move is designed to modernize the corporate sector by facilitating a smoother, more transparent shareholding process. The regulator’s announcement specifically targets companies with a paid-up capital of up to Rs25 million, offering them a complete waiver on annual fees for one year as they undertake the digitization of their shares.
In addition to the annual fee waiver, the SECP has also decided to exempt these companies from paying security deposits and conversion fees during the initial year of this transition. This financial incentive is expected to alleviate the cost burden on smaller firms, making the shift to electronic shares more accessible and appealing. For companies with a paid-up capital exceeding Rs25 million, the SECP clarified that only the annual fee will remain applicable, while other charges will be waived to some extent.
Moreover, the commission emphasized that this fee relief package is available to all unlisted companies that voluntarily opt to convert their physical shares into book-entry or digital form. This voluntary compliance is being encouraged ahead of the mandatory deadline set by the SECP, which requires all unlisted companies to complete the digitization process. The regulator highlighted that this digital transformation is not only essential for routine shareholding but also critical for executing corporate actions such as bonus issues, rights offerings, and share buybacks.
The shift towards digital shares is expected to significantly reduce disputes related to share ownership and transfer, thereby enhancing the overall efficiency and integrity of the corporate sector. By moving away from paper-based share certificates, the SECP aims to create a more streamlined and secure environment for investors and companies alike.
Meanwhile, the SECP also shared encouraging data reflecting a surge in new company registrations across Pakistan. During the first half of the current fiscal year, the country witnessed a remarkable 29 percent increase in newly registered companies, totaling 21,668. These new entities collectively brought in a paid-up capital of Rs30.7 billion, signaling a robust expansion of the corporate landscape. With these additions, the total number of registered companies in Pakistan has climbed to 279,724, underscoring growing business activity nationwide.
The information technology and e-commerce sectors emerged as the most dynamic, with 4,277 new companies registered, highlighting the increasing role of technology-driven enterprises in Pakistan’s economy. Notably, foreign investment also played a significant role in this growth, with 524 newly registered companies including foreign capital amounting to Rs1.26 billion. Among the international contributors, China stood out by accounting for 71 percent of the total foreign investment in these new companies, reflecting strong bilateral economic ties.
Officials interpret this upward trend as a clear indication of rising investor confidence in Pakistan’s regulatory environment and the improving ease of doing business. The SECP’s initiatives, including the digitization drive and fee relief measures, are seen as pivotal steps toward fostering a more transparent, efficient, and investor-friendly corporate sector.
