A total of 27,746 new companies were registered in the fiscal year 2023, marking a substantial increase in business startups. However, this growth was accompanied by rigorous actions against illegal fund collection and financial misconduct.
Over Rs 5 billion were collected from multiple companies for breaching laws related to fund collection and financial irregularities like anti-money laundering and terror financing.
The Securities and Exchange Commission of Pakistan’s (SECP) annual report highlighted this surge in new business registrations, attributing it to policy reforms and enhanced consumer protection measures. By June 30, 2023, the total number of registered companies reached 196,805, showcasing the positive impact of these reforms.
In the non-banking financial sector, there was a notable growth of 35.9%, while the insurance sector reported a 34% increase in revenue, signifying significant progress and stability in these domains.
However, the SECP remained vigilant against financial crimes, processing 83 cases related to violations concerning anti-money laundering and terror financing. Additionally, stringent penalties were imposed on 24 companies found guilty of unlawfully extracting funds from consumers.
Furthermore, in a bid to uphold corporate integrity, the SECP took action against 41 directors associated with more than 120 companies, banning their involvement in board positions or forming new companies. Moreover, legal proceedings were initiated to shut down 21 companies involved in various unlawful activities, emphasizing the commitment to ensure compliance and integrity in the business landscape.