27,542 new companies registered in FY24

KARACHI: Pakistan saw a record number of new company registrations in the fiscal year ended June 2024, driven by a surge in the technology sector, the Securities and Exchange Commission of Pakistan (SECP) said on Friday.

A total of 27,542 new companies were registered, bringing the overall count to 222,697, the SECP said in a statement. Private limited companies accounted for the majority of new registrations at 58 per cent, followed by single-member companies at 39 per cent.

The remaining 3.0 per cent registered as public unlisted companies, not for profit associations, guarantee limited companies, trade organizations, limited liability partnerships (LLPs) and foreign companies. Around 99.8 per cent of companies were registered online.

The technology sector emerged as the top performer, with 4,129 new companies incorporated, followed by trading (3,666) and services (3,302). Real estate, tourism, education, and food and beverages also saw significant growth; new companies in these sectors totalled at 2,992, 1,346, 1,177, and 1,103, respectively.

The statement said that foreign investment was reported in 688 new companies by investors from China, Afghanistan, the US, the UK, Germany, the UAE, Australia, Turkey, Nigeria, Norway, Canada, Saudi Arabia, Egypt, Malaysia, Singapore, Denmark, South Korea, the Netherlands, Russia, Spain.

A major chunk of investment was received from China with 393 companies, followed by the US with 34; Afghanistan with 32; the UK with 27; Germany with 20; the UAE with 13; Australia and Turkey with 10 each; Nigeria with nine; Norway with eight; and Canada and Saudi Arabia with seven each.

Egypt, Malaysia and Singapore invested in six companies each; Denmark, South Korea, the Netherlands, Russia, and Spain with five each. Seventy-five companies received investment from other countries.

The SECP further added that 942 local ecommerce companies were registered; corporate agricultural farming companies totalled at 780; marketing and advertisement 620; textile 589; mining and quarrying 574; power generation 560; engineering 547; and transport 523.

Companies in the healthcare sector also saw a modest increase at 434. At least 497 pharmaceutical companies were registered; 457 chemical; 376 fuel & energy; and 352 cosmetics & toiletries.

Around 31 foreign companies from China, the UAE, Turkey, Australia, Canada, Bahrain, Ethiopia, France, Germany, Hong Kong, Korea South, Norway, Saudi Arabia and the US established places of business in Pakistan during the financial year, the statement said.