New laws to encourage company listings

The government has decided to amend laws in a bid to ease regulations and encourage more companies to enter the ranks of listed companies.

At present, many companies prefer to stay out of the network of listed firms due to excess regulations, including the publication of audit reports along with other requirements related to finances. In that regard, according to sources, the government also plans to amend the Securities and Exchange Commission of Pakistan (SECP) law.

Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan chaired a meeting of the sub-committee on regulatory reforms on Thursday to review the reform measures concerning listed companies. Representatives of the SECP, State Bank and Board of Investment, including Scott Jacob, attended the meeting.

The committee held comprehensive discussions on reform strategies, but expressed concern over weak stock market performance, the limited scale of listed firms and their low contribution to GDP.

Khan highlighted that on the directives of Prime Minister Shehbaz Sharif efforts were being accelerated to make the regulatory system business-friendly by removing unnecessary restrictions.

"The vision is to restore investor confidence and stimulate economic activity," he said, adding "this vision is now becoming a reality through regulatory improvements that will promote business and investment."

He noted that reforms had been designed based on global best practices, focusing on less regulated, high-performance models with minimal restrictions, aimed at strengthening compliance mechanisms while encouraging operational flexibility.