Improved macroeconomics spurred corporatisation: SECP.
The Security Exchange Commission of Pakistan (SECP) said improvement in the macroeconomic environment of the country has led to increased incorporation of companies during the last fiscal year.
"The SECP incorporated 8,286 companies in the FY 2016-17 compared to 6200 in FY2015-16, while the incorporation of firms saw a tremendous growth of 109.24 percent during 2013-2017," the commission said in a statement.
"This trend continued during current fiscal year as Q1 FY18 has seen 64 percent growth compared to the corresponding quarter last year. This is reflective of the reforms undertaken by the Securities and Exchange Commission of Pakistan."
The statement said these facts were highlighted during the SEC Policy Board meeting held to approve the SECP's annual report and audited annual accounts for the financial year 2016-17. The meeting was chaired by Shahid Mahmood, chairman, SEC Policy Board and federal secretary for finance.
"The Policy Board also viewed with satisfaction the fact that foreign investment was reported in 562 new companies, including 33 from China. This reflects that the CPEC factor has started contributing to growth," the statement said adding, "The Board also observed that the SECP's audited annual accounts for FY 2016-17 show impressive financial soundness of the regulatory body, evident from the 14% year-on-year growth in the SECP's financial strength."
It said that in addition to the strong financial performance, the SECP carried forward its legislative reforms in the last few years, in line with the financial reform agenda of the government.
"The SECP was able to get nine pieces of primary legislations passed by the parliament, including the Securities Act, the Futures Act, the Companies Act, the SECP Amendment Act, etc., while five new bills have been proposed," the statement said. The meeting was also informed that SECP successfully processed the approval/amendment in over 80 secondary rules/ regulations under laws administered by it.