Company registration doubled in May this year
Construction and real estate and IT were the top sectors to attract the most number of businesspersons and entrepreneurs in May this year, according to data shared by the Securities and Exchange Commission of Pakistan (SECP).
The construction and real estate sector took the lead with incorporation of 252 companies while companies in other sectors include: trading 247, IT 216, services 149, e-commerce 64 and food and beverages 59.
“The government is taking keen interest in the construction sector,” said senior research analyst Ahmed Lakhani. “Cement and steel companies are doing well at the Pakistan Stock Exchange.”
“The government’s Naya Pakistan Housing Scheme and other policies are boosting the construction and real estate sector,” Lakhani added.
Prime Minister Imran Khan, before coming to power, announced that his government would be looking for an economic turnaround through the construction sector.
There is said to be a massive need of houses in Pakistan – around 11 million. And this demand is incrementally increasing by 700,000 houses every year. (Housing demand has been disputed by critics, who say that unused or empty housing is also sitting across the country because people can’t afford them.)
The SECP registered 1,597 new companies in May. The number was 107% higher as compared to May last year. The total number of registered companies increased to 143,416.
“It will be for the first time that new company incorporation will cross 25,000 in a year (this fiscal year),” said an SECP official. “We are expecting 35% growth compared to the previous year.”
“During the pandemic, people moved toward IT-based businesses. Secondly, registering a company is now very easy, and you can register a company for Rs1,500 from anywhere in world.”
IT companies showed a 55% growth this year. It has never happened before, the official added.
“This is for the second consistent month that over 100% growth in incorporation of new companies is being witnessed,” said an SECP statement.
The SECP attributes the trend of growth to digitization and automation, introduction of simplified combined processes for name reservation and incorporation, and support from the SECP’s new Business Centre.
In May, around 99% companies registered online. Around 175 foreign users registered from overseas.
Foreign investment has been reported in from 48 new companies from Azerbaijan, China, Denmark, Germany, Korea South, Kuwait, Malta, the Netherlands, Norway, Russia, Singapore, Turkey, UAE, the UK and the US.