In a noteworthy development, the Information Technology (IT) sector emerged as the frontrunner in corporate incorporation in Pakistan during the month of October 2023.
Official figures released by the Securities and Exchange Commission of Pakistan (SECP) indicate that the IT sector outpaced other industries, witnessing the incorporation of a staggering 326 companies. This surge was followed closely by trading with 322 companies, services with 298, and real estate development and construction with 290.
The SECP disclosed that a total of 2,463 new companies were registered in October 2023, elevating the overall count to an impressive 205,456 registered companies in the country. The cumulative capitalization of these newly incorporated companies reached Rs4.24 billion, and notably, a staggering 99.6 percent of them opted for online registration, reflecting the growing digitalization trend in the corporate registration process.
Among the sectors that experienced significant registration activity were education, tourism, food and beverages, e-commerce, mining and quarrying, corporate agricultural farming, marketing and advertisement, textile, pharmaceutical, transport, engineering, chemical, power generation, healthcare, cosmetics and toiletries, broadcasting and telecasting, and lodging. This diverse range of sectors illustrates the multifaceted growth and development across various industries within the Pakistani business landscape.
The SECP highlighted its efforts in streamlining the registration process, citing the integration of its eService with the Federal Board of Revenue (FBR) and other provincial departments. This integration facilitated 2,281 companies to register with the FBR, 61 with the Employees Old Age Benefit Institute, 27 with the provincial social security institutions, and 34 with the excise and taxation departments. This interconnectivity aims to enhance the efficiency and transparency of the registration process, contributing to a business-friendly environment.
Moreover, the SECP announced the influx of foreign investment in 75 new companies from 22 countries, emphasizing the global interest in Pakistan’s burgeoning business landscape. The major contributors to foreign investment included countries such as China, Afghanistan, the United Kingdom, Germany, and the United Arab Emirates. This influx of international capital signifies the growing confidence of the global business community in Pakistan’s economic potential and stability.
Industry experts attribute the prominence of the IT sector in the October 2023 incorporation figures to the increasing digitalization of businesses and the global demand for technology-related services. Pakistan’s IT sector has been gaining recognition for its innovation and competitiveness, making it an attractive destination for both local and foreign investors.
As the country continues to diversify its economy and encourage entrepreneurship, the robust incorporation figures for October 2023 underscore Pakistan’s position as an emerging business hub in the region. The SECP’s commitment to modernizing and simplifying the registration process, coupled with the inflow of foreign investment, bodes well for the sustained growth and dynamism of Pakistan’s corporate landscape in the coming years.
