Company faces ongoing losses as misinformation stays online
Billions in investment, thousands of jobs at risk over SECP inaction
Staff Report
ISLAMABAD: Billions in losses and lasting reputational damage continue to mount for a private company employing five thousand people after Pakistan’s financial regulator removed — but did not publicly retract — a press release later deemed both legally unsound and factually inaccurate.
The Securities and Exchange Commission of Pakistan (SECP) took down the disputed statement from its website in compliance with a recent court order. However, the allegations, first circulated through the regulator’s official channels, remain accessible on mainstream media platforms, with no corrective notice issued.
Legal experts note that merely deleting the content from an official portal does not erase its impact. “Unless the regulator takes proactive steps to publicly withdraw the information, the harm remains,” one practitioner said, pointing to legal principles that oblige state bodies to rectify their own errors.
Sources familiar with the case say the original release, which accused the company of business violations, was issued without adequate verification and ran counter to judicial findings at Islamabad High Court that invalidated specific enforcement actions. The absence of follow up communication to correct the record, they warn, risks undermining both market integrity and public trust in financial oversight.
Sources have urged parliamentary scrutiny into post litigation compliance practices, arguing that regulators must be held accountable for misinformation they originate. They contend that statutory safeguards should explicitly require public retractions in cases where official statements are later found unlawful or inaccurate.
Analysts caution that such inaction can erode investor confidence, particularly among foreign stakeholders sensitive to governance risks. If regulatory bodies are perceived as unwilling to correct their mistakes, capital inflows will suffer, one market strategist observed, noting the broader economic implications.
The episode has also reignited debate within the legal community over whether Pakistan’s financial sector laws sufficiently protect against reputational harm from premature or unverified regulatory announcements. Several commentators have called for reforms to embed corrective disclosure obligations into the regulatory framework.
Observers caution that without systemic reform, Pakistan’s regulatory framework will remain vulnerable to repeat episodes where reputations are damaged before facts are established, forcing affected parties into expensive and protracted litigation for redress. They stress that embedding a clear legal obligation for timely public corrections into enforcement protocols would not only protect individual businesses but also serve the wider economy by signalling accountability and fairness.
In an era where capital is mobile and investor confidence fragile, such measures could help reassure both domestic entrepreneurs and international stakeholders that Pakistan’s markets are governed transparently. Analysts add that decisive statutory change would project stability, reinforce the rule of law, and demonstrate that regulatory authority is matched by a duty to rectify its own missteps without delay.
Repeated requests for comment from the SECP on whether it plans to issue a public clarification or request retractions from media outlets went unanswered at the time of filing.
Billions in investment are now in jeopardy as regulatory inaction by the SECP fuels uncertainty. The stalemate is also placing thousands of jobs on the line, heightening concerns over market stability. Observers warn the combined economic and human cost could deepen if corrective measures are not taken soon.
