SECP Freezes Bank Accounts of 39,704 Companies
SECP freezes bank accounts of 39,704 companies after marking them inactive for failing to file annual returns or financial statements for four years. The affected firms cannot open new bank accounts, and their existing accounts will stay frozen until they complete their overdue filings and regain active status.
ProPakistani reported the action by the Securities and Exchange Commission of Pakistan (SECP) on Saturday. The regulator said the move aims to make the corporate register more reliable and to stop inactive companies from being misused. It also blocks the firms from using other financial services while they remain inactive.
Why SECP freezes bank accounts now
Filing an annual return, and a financial statement where required, is a legal duty under the Companies Act, 2017. The filings keep public records on a company, its owners and its managers up to date. When a firm stops filing for years, the register no longer shows whether it still trades, who runs it, or what it owns.
The SECP said long gaps in filing weaken the register and can hinder work against money laundering and terrorist financing. That concern links this action to the regulator’s wider compliance push. Earlier this month, the SECP issued a new terror financing guidebook for regulated firms, and it has also set up a Corporate Intelligence Unit to catch Ponzi schemes before savers lose money.
SECP Chairman Dr Kabir Ahmed Sidhu said a transparent and reliable corporate register was the foundation of business confidence. He said separating inactive companies from the register was important for protecting the financial system, and added that firms could return to active status by meeting their legal duties.
Where the inactive companies are based
Lahore and Islamabad account for most of the inactive companies. Together, the two cities hold 27,786 of the 39,704 firms, or about seven in every ten. The full city breakdown shows how concentrated the problem is in the two largest registration centres.
| City | Inactive companies |
|---|---|
| Lahore | 13,927 |
| Islamabad | 13,859 |
| Karachi | 4,868 |
| Peshawar | 2,031 |
| Multan | 1,861 |
| Faisalabad | 1,384 |
| Gilgit | 1,102 |
| Quetta | 436 |
| Sukkur | 236 |
The scale is large in context. Pakistan had 317,002 registered companies at the end of September 2026, so the 39,704 inactive firms equal about 12.5 per cent of the whole register. The register still grows: the SECP registered 43,559 new companies in the previous financial year, 24 per cent more than the year before.
What companies must do to regain active status
An inactive company must submit all of its outstanding filings to the SECP. Until it does so, the restrictions stay in place. The firm cannot open a new bank account, its existing accounts remain frozen, and it cannot access financial services during the inactive period.
Director changes also freeze. The SECP said changes in a company’s directors will not be registered while it is inactive.
For small firms, the lesson is simple. A company that has stopped trading still needs to file, or to close properly, or it risks losing access to its own bank account.
Why this matters for Pakistan’s business register
A register full of dead companies creates risk for everyone who uses it. Banks, suppliers and investors rely on it to check whether a firm is real and current. When thousands of inactive names sit alongside live firms, checks take longer and fraud becomes easier to hide.
Frequently asked questions
How many companies has the SECP marked inactive?
The SECP has marked 39,704 companies inactive after they failed to file annual returns or financial statements for four years.
What happens to the bank accounts of inactive companies?
Inactive companies cannot open new bank accounts, and their existing accounts remain frozen until they complete their outstanding filings.
Which cities have the most inactive companies?
Lahore has the most, with 13,927 inactive companies, followed by Islamabad with 13,859 and Karachi with 4,868.
How can a company regain active status?
A company must submit all of its outstanding filings to the SECP. Once it meets its legal duties, it can return to active status.
Does inactive status mean a company is closed?
No. Inactive status restricts banking and financial services and blocks director changes, but the company can return to active status by filing its overdue documents.
