Key Points
- SECP and IFC hold second stakeholder consultation under the ESG Pakistan Project
- Focus on embedding sustainability and accountability in corporate practices
- Partnership supported by the UK’s FCDO and FIAS to accelerate ESG reforms
- Panellists emphasise sustainable finance, transparency, and capacity-building
KARACHI: The International Finance Corporation (IFC), in collaboration with the Securities and Exchange Commission of Pakistan (SECP), held its second stakeholder consultation session in Karachi under the ESG Pakistan Project to strengthen Pakistan’s corporate sector.
ESG stands for Environmental, Social, and Governance. It refers to the three key factors used to evaluate a company’s sustainability and ethical impact — including how it manages environmental responsibility, social relationships, and corporate governance practices.
IFC, the World Bank’s commercial lending arm and Pakistan’s corporate watchdog, jointly aim to align the local corporate market with international environmental, social, and governance standards for improved investment readiness.
The session brought together key stakeholders from capital market institutions, the corporate sector, and professional bodies, building upon the discussions on sustainable business practices initiated at the project’s launch in July 2025.
SECP Chairperson Akif Saeed highlighted the SECP’s commitment to its partnership with IFC, stating that the collaboration was central to advancing sustainability and inclusive development. “Our ESG reforms, being implemented in a phased and collaborative manner, are gaining international recognition as best-practice examples,” he said. “Through the ESG Regulatory Roadmap, Disclosure Guidelines, and the ESG Sustain Portal, we are embedding sustainability and accountability in market practices while enhancing corporate readiness and attracting climate-aligned investments.”
Zunee Muhtashim, Principal Investment Officer at IFC, underscored that incorporating ESG practices is now a critical priority for businesses seeking to strengthen their reputation, attract investment, and drive sustainable growth. She added that the project, implemented jointly with SECP and supported by the UK’s Foreign, Commonwealth & Development Office (FCDO) and the Facility for Investment Climate Advisory (FIAS), is helping accelerate ESG-focused regulatory frameworks.
Noman Rosenbaum, representing FCDO, noted that strengthening ESG-aligned reforms is key to building market confidence and unlocking sustainable private investment in Pakistan.
A panel discussion, moderated by Mohsin Ali from IFC, featured experts from SECP, the Institute of Chartered Accountants of Pakistan, the Pakistan Institute of Corporate Governance, the banking sector, and sustainability practitioners. SECP Executive Director Musarat Jabeen said that the next phase of the SECP’s ESG journey would help implement and translate policy into measurable corporate practices. “Our goal is to equip companies with the tools, data systems, and incentives needed to turn sustainability commitments into tangible outcomes,” she said.
Panellists collectively emphasised the growing momentum for sustainable finance in Pakistan. They underscored the importance of public-private collaboration, market incentives, and capacity development to align ESG commitments into meaningful corporate action and long-term impact.
Under the three-year ESG project, IFC will support SECP in nationwide stakeholder engagement, sector-specific ESG capacity-building workshops, the development of guidance materials, and impact assessments using data from the ESG Sustain portal. The project aims to reinforce SECP’s broader efforts to build a regulatory environment that is transparent, inclusive, and aligned with international sustainability standards.
