Pakistan’s top financial regulator and the International Finance Corporation (IFC) are advancing a major initiative to align the nation’s corporate sector with stringent international environmental, social, and governance (ESG) standards, a move designed to make the country’s capital markets more competitive and ready for climate-aligned global investment.
The push for reform was the central theme of the second stakeholder consultation session held today in Karachi, organized by the IFC in collaboration with the Securities and Exchange Commission of Pakistan (SECP) under the ESG Pakistan Project. The event gathered key representatives from capital market institutions, the corporate sector, and professional bodies.
This meeting continued discussions on sustainable business practices that began with the project”s launch in July 2025.
In his keynote address, SECP Chairperson Mr. Akif Saeed underscored the commission’s commitment to the partnership. ‘Our ESG reforms, which are being implemented in a phased and collaborative manner, are gaining international recognition as best-practice examples,’ he remarked, adding that the ESG Regulatory Roadmap and Disclosure Guidelines are embedding sustainability and accountability in the market.
Mr. Saeed also noted that an encouraging response to a recent ESG survey will help regulators identify sectoral challenges and formulate policies to guide Pakistan’s transition toward a transparent and resilient economic ecosystem.
Ms. Zunee Muhtashim, Principal Investment Officer at IFC, observed that incorporating ESG practices is now a critical priority for businesses aiming to strengthen their reputation and drive sustainable growth. She stated the project, supported by the UK”s Foreign, Commonwealth and Development Office (FCDO) and the Facility for Investment Climate Advisory (FIAS), seeks to accelerate the implementation of ESG-focused regulatory frameworks.
Representing the FCDO, Mr. Noman Rosenbaum highlighted that strengthening ESG-aligned reforms is essential to building market confidence and unlocking sustainable private investment in the country.
During a panel discussion, Ms. Musarat Jabeen, Executive Director of the SECP, outlined the next phase of the commission’s ESG journey. She explained the focus is now on deepening implementation and translating policy into measurable corporate practices. The objective, she added, is to equip companies with the tools and incentives needed to turn sustainability commitments into tangible outcomes.
Panelists, including figures from the banking sector and sustainability practitioners, collectively emphasized the growing momentum for sustainable finance in Pakistan. They stressed the importance of public-private collaboration and capacity development to transform ESG commitments into meaningful corporate action.
Under the three-year ESG initiative, the IFC will assist the SECP with country-wide stakeholder engagement, sector-specific capacity-building workshops, and the development of guidance materials. The program will also assess the impact of ESG practices among listed companies using data from the ESG Sustain portal, reinforcing efforts to build a regulatory environment aligned with international standards.