SECP notifies licensing relief for foreign-sponsored companies

The Securities and Exchange Commission of Pakistan (SECP) has simplified the licensing process for companies with foreign sponsors to attract investment and improve the business environment in Pakistan, reported 24NewsHD TV channel on Monday.

The SECP announced the change to reduce delays and speed up approvals for businesses operating in regulated sectors.

Under the revised procedure, companies can now submit licensing applications based on affidavits from their directors. 

As a result, applicants no longer need to obtain prior security clearance for foreign directors before receiving a license.

However, relevant authorities will still review and approve the appointment of foreign directors after licensing. If authorities reject a director’s security clearance, the company must appoint a replacement.

The SECP expects the change to shorten licensing timelines and make it easier for foreign investors to enter Pakistan’s market. The measure will particularly benefit businesses in capital markets, insurance, non-banking finance, and other financial services sectors.

According to the regulator, the security clearance requirement had previously slowed down licensing approvals and created challenges for investors. Therefore, the new policy aims to remove a key hurdle while maintaining regulatory safeguards.

SECP Chairman Kabir Sadhu said the reform supports investment while preserving oversight. He added that the SECP will continue to ensure compliance with national laws and security requirements.

The latest reform forms part of the SECP’s broader efforts to modernize regulatory processes and enhance investor confidence. 

By reducing procedural requirements at the application stage, the regulator aims to create a more efficient licensing framework that supports business growth, encourages foreign participation, and strengthens Pakistan’s appeal as an investment destination.