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Foreign Investment Steady as Corporate Growth Gains Pace

ISLAMABAD, April 18: Foreign participation in Pakistan’s corporate sector remained steady during the first quarter of 2026, with 220 companies registered with foreign shareholders, contributing a total paid-up capital of Rs 657 million, slightly higher than Rs 642 million in the same period last year.

The trend reflects continued investor confidence and sustained foreign engagement in Pakistan’s formal business landscape.

The third quarter data for FY 2025–26 (January–March 2026), released by the Securities and Exchange Commission of Pakistan (SECP), reflects broad-based growth across sectors and regions, driven by ongoing efforts in digitalization, regulatory facilitation, and stakeholder engagement.

Foreign investment remained concentrated in key sectors including trading, services, IT, construction, and mining, indicating investor interest in both traditional and emerging areas of the economy. The overall pattern suggests stable foreign inflows contributing to Pakistan’s corporate growth and increasing integration with global markets.

During January–March 2026, a total of 10,318 new companies were registered, marking a 12.5% year-on-year increase. Private companies dominated with a 58.6% share, followed by single member companies at 37.9%, reflecting continued expansion of the SME sector.

Regionally, Punjab accounted for 50.2% of total incorporations, followed by Islamabad (19.0%) and Sindh (15.5%), which recorded a strong 23% growth. Gilgit-Baltistan emerged as the fastest-growing region with a 97.8% increase, indicating growing business formalization in emerging areas.

Sectoral activity remained concentrated in high-growth segments, with the top seven sectors contributing 71.9% of total registrations. The IT and e-commerce sector led with 2,065 new companies (20%), followed by trading (16.4%) and services (12.5%). The trading sector recorded the highest growth at 41.1%, while communications and healthcare also showed notable expansion.

On the regulatory front, SECP processed 95,823 corporate filings, reflecting a 27% increase compared to the same period last year. Post-incorporation filings rose by 33%, indicating improved compliance levels and a maturing corporate ecosystem.

The Secured Transactions Registry (STR) also remained active, with over 6,000 financing statements filed and more than 5,000 searches conducted, supporting access to credit and financial inclusion in the country.

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