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Corporate sector of Pakistan

From Wikipedia, the free encyclopedia

TheCorporate sector of Pakistan (otherwise attributed as theCorporatization; or/ simply referred to as thePakistan Inc.) is an elitebusiness sector expanded infinancial cities of Pakistan, and a policy measure programme in theeconomic period of Pakistan. This programme is also regarded as "Pakistan Inc.", which is a common term used by themass-media of Pakistan to refer to thecorporate sector of the nation.[1][2][3][4] The current policy measure programme is theCompanies Ordinance 2016 that legally allows a variety of formations in themixed economy of Pakistan.

The programme was originally based on the Indian Companies Act, 1913, which was replaced by the Companies Ordinance 1984, finally being replaced by the current Companies Ordinance 2016 in a vision to promoteWestern-styled corporate sector, and business activities development in Pakistan.[5] The corporate sector came in direct response tonationalization programme of executedPrime MinisterZulfiqar Ali Bhutto and thePakistan Peoples Party to promote . This programme was integrated inPrivatization programme of Prime ministerNawaz Sharif in 1990 who gave free hand toprivate sector to expand the economical activities in the country. The corporate sector remained to expand in Prime ministerBenazir Bhutto's government who promoted the nationalization and privatization at once. In 2004, in a programme initiated by Prime ministerShaukat Aziz, the corporate sector further enhanced and matured; it had built a strong and sizeable sector in the financial hubs of the country.

Under Aziz, many ofstate-owned megacorporations along with private sector had been registered in stock exchanges of the country in order to promote business competition in the country.

Growth trend

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TheSecurities and Exchange Commission of Pakistan has registered 920 new companies in the first quarter of 2005. TheCompany Registration Office at Lahore registered the most number of companies at 324, CRO Karachi 285 companies, and CRO Islamabad 211 companies.

Of the 920 companies, 898 were limited by shares comprising 21 public unlisted companies, 840 private companies, and 37 single member companies. In addition, the commission also registered 11 foreign companies, 9 associations not-for-profit and 2 companies limited by guarantee. Total authorized capital and paid up capital of the companies limited by shares amounted to Rs.50 billion and Rs.2 billion, respectively.

The services sector recorded 161 new incorporations, followed by 121 in trading, 64 in Information Technology, 59 in communication, 50 in fuel and energy, 49 in the real estate development, 38 in construction and 37 in textile sector. The SECP encourages and facilitates corporatisation of all businesses so that the corporate sector contributes towards the economic development of the country.[1]

In July 2025,Microsoft announced the closure of its limited operations inPakistan after 25 years, citing global restructuring and a shift to a partner-led, cloud-first model. The decision, part of a broaderlayoff of over 9,000 employees worldwide, was seen by analysts as a troubling signal of declining investor confidence and operational challenges in Pakistan. Stakeholders noted that the move reflects growing concerns among multinational corporations over security, regulatory instability, and the overall business environment in the country.[6]

As of 2005, theBoard of Investmentestimates that there were 43,965 corporate enterprises registered in Pakistan as detailed below:

Companies Incorporated43,618Financial Services Companies244Insurance Companies56Banking Companies47
Private companies limited by share39,628Modaraba companies64Local general insurance companies48
Public non-listed companies2,214Investment advisors57Local life insurance companies3
Public listed companies687Modarabas47Foreign general insurance companies3
Foreign companies643Close-endmutual funds37Foreign life insurance companies2
Welfare organisations and associations357Leasing companies30
Trade companies limited by guarantee83Asset management companies4
Unlimited companies6Open-end mutual funds3
Credit rating companies2

Issues

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Economic instability, including currency depreciation, declining foreign investment, and a volatile regulatory climate, has created a difficult landscape for global firms.[7][8] Over 55 local startups either shut down or pivoted between 2021-2024,[9] while tech funding dropped by 88% between 2022 and 2024. Issues such as poor internet infrastructure, frequent power outages, and political uncertainty have also contributed to an exodus of skilled professionals and companies alike. These developments have raised concerns about Pakistan's ability to attract and retain multinational firms across various sectors.[7][8]

See also

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References

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  1. ^PAKISTAN Inc
  2. ^Pakistan Inc wants to dance with India Inc. Will the Indians oblige?, The Economic Times
  3. ^Pakistan, Inc.: Indians not allowed, The Economic Times
  4. ^Pakistan Inc,Pakistan Today
  5. ^E-Govt., Electronic Government."The Companies Ordnance Act, 1984"(PDF).Security and Exchange Commission. Government of Pakistan. Archived fromthe original(PDF) on 10 May 2012. Retrieved12 June 2012.
  6. ^PTI (2025-07-05)."Microsoft closes its Pakistan office after 25 years".The Hindu.ISSN 0971-751X. Retrieved2025-07-05.
  7. ^abMalik, Abdul Moiz (2025-07-05)."Microsoft closes office in Pakistan, lays off staff".DAWN.COM. Retrieved2025-07-07.
  8. ^ab"Why is Microsoft pulling out of Pakistan after 25 years: Reports".The Times of India. 2025-07-05.ISSN 0971-8257. Retrieved2025-07-07.
  9. ^Virani, Faiza (2025-07-03)."Pakistan's shrinking tech landscape: global companies exit amidst capital crunch".Brecorder. Retrieved2025-07-07.

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