The Securities and Exchange Commission of Pakistan (SECP) has completed enforcement proceedings against 36 state-owned enterprises (SOEs), imposing penalties totaling Rs. 3.175 million and issuing warning orders in several cases as part of efforts to strengthen corporate governance and accountability in the public sector.
According to the regulator, proceedings were concluded on 58 show-cause notices issued to state-owned enterprises for various violations, including failure to file annual returns, non-submission of audited financial statements, breaches of disclosure requirements, and violations of corporate governance regulations. The action follows the issuance of 66 show-cause notices to 41 SOEs in March 2026.
The SECP stated that 46 adjudication orders resulted in financial penalties, while 12 cases were resolved through warning orders. Proceedings related to eight cases remain ongoing. The regulator added that all affected entities were provided adequate opportunities to respond to the notices and present their case before final decisions were reached.
Under the enforcement measures, the minimum penalty imposed was Rs. 25,000 for failing to file annual returns. Companies that failed to submit both annual returns and financial statements faced fines of Rs. 50,000, while repeated violations attracted significantly higher penalties. The maximum penalty of Rs. 225,000 was imposed in cases involving persistent non-compliance with statutory filing obligations.
The enforcement drive is part of the government’s broader reform agenda aimed at improving transparency, accountability, and governance standards across state-owned enterprises. The SECP said it has strengthened oversight mechanisms and continues to pursue compliance with the Companies Act and the applicable corporate governance framework.
The regulator noted that several state-owned enterprises regularized their compliance after receiving show-cause notices by submitting overdue annual returns and required filings. To facilitate future compliance, the SECP has also established a dedicated facilitation desk to assist SOEs with annual returns and other statutory obligations.
Copies of the adjudication orders have been forwarded to the relevant Principal Accounting Officers and the Central Monitoring Unit for further follow-up. The regulator urged all state-owned enterprises to improve internal compliance controls and ensure timely fulfillment of statutory requirements to avoid future enforcement action.
Among the most significant penalties, the Federal Liver Transplant Endowment Fund received fines of Rs. 225,000 each for failing to file annual returns and financial statements. Karachi Urban Transport Corporation Limited was penalized Rs. 225,000 and Rs. 175,000 for similar violations, while Karachi Garment City Company was fined Rs. 150,000 each for non-filing of annual returns and accounts.
Other entities facing penalties included Pakistan Television Corporation, Fisheries Development Board, Postal Life Insurance Company, Energy Conservation Fund, and Printing Corporation of Pakistan. Meanwhile, warnings were issued to Utility Stores Corporation, Pakistan Revenue Automation Pvt Ltd, Saindak Metals Limited, and Jamshoro Power Company for various compliance shortcomings.
