By Abdul Ghani

Pakistan recorded its highest-ever number of company registrations during FY2025-26, reflecting improving business confidence amid macroeconomic stabilisation, easing inflation and a more favourable investment environment.

According to the Finance Division's Monthly Economic Update & Outlook (July 2026), the Securities and Exchange Commission of Pakistan (SECP) registered a record 43,559 companies during FY2025-26, representing a 24.1% increase over the previous fiscal year. The report says this milestone indicates the growing formalisation of businesses and strengthening investor confidence in the economy.

The report states that the increase in company registrations coincided with a significant improvement in Pakistan's macroeconomic fundamentals during FY2025-26. Inflation declined sharply, fiscal performance strengthened, foreign exchange reserves improved and exchange rate stability was maintained, creating a more supportive environment for business activity and private investment.

According to the document, the government also introduced several measures aimed at broadening investment opportunities and deepening financial markets. These included the launch of the InvestPak digital platform, enabling individuals and corporate investors to invest in government securities through digital channels, as well as facilitating retail investment in Treasury bills through the JazzCash application.

The Finance Division notes that business confidence has also been supported by improvements in Pakistan's external sector. Strong growth in workers' remittances, higher services exports, increased foreign direct investment and stronger foreign exchange reserves have contributed to greater macroeconomic stability, helping improve the overall investment climate.

According to the report, Pakistan's improving economic performance has also received international recognition. It notes that S&P Global Ratings upgraded the country's long-term sovereign credit rating from B- to B, citing stronger fiscal performance, the continued implementation of reforms, improved institutional capacity and higher foreign exchange reserves.

The document says the government expects the positive momentum to continue during FY2026-27, supported by prudent macroeconomic management, structural reforms and improving business sentiment. While geopolitical developments and global economic uncertainties continue to pose risks, the Finance Division believes stronger economic fundamentals have enhanced Pakistan's resilience and created conditions for sustained private sector growth.

The report adds that the record number of new company registrations reflects growing confidence in the formal economy and is expected to contribute to higher investment, job creation and broader economic activity as Pakistan continues on its recovery path.

Credit: INP-WealthPk