KARACHI: Environmental, social and governance (ESG) reporting in Pakistan remains limited and uneven, with only a small fraction of listed companies providing verified sustainability disclosures, Senator Sherry Rehman said on Tuesday.
Speaking at the Pakistan ESG Policy Symposium 2026, she said Pakistan requires a rules-based, enforceable ESG framework underpinned by legislation rather than voluntary reporting mechanisms.
Referring to claims that 11-18 per cent of companies publish stand-alone sustainability reports, Rehman said such disclosures are rarely evident in practice in her role as chair of the Senate Standing Committee. She noted that out of the roughly 522 companies listed on the Pakistan Stock Exchange, only a minority currently report verified ESG data.
Rehman said current disclosure practices remain inconsistent despite emerging policy momentum and early discussions within the regulatory system on introducing ESG reporting thresholds for listed firms.
She proposed a formal accountability mechanism under which companies submitting sustainability reports would be required to present their disclosures before parliamentary committees, similar to other regulatory review processes.
She said many sustainability reports were designed to improve corporate image rather than ensure substantive transparency, adding that stronger inspection and enforcement systems were necessary to support credible ESG implementation.
Rehman argued that Pakistan should move beyond executive guidance towards binding legislation, saying statutory frameworks offer more durable compliance than regulatory instructions alone.
She acknowledged concerns from industry regarding compliance and taxation pressures, but said ESG obligations must remain measurable and enforceable. She also welcomed the Securities and Exchange Commission of Pakistan’s (SECP) roadmap to implement ESG reporting requirements by 2029, while calling for closer coordination between regulators and the private sector during the transition phase.
Highlighting broader macroeconomic pressures, she said Pakistan faces concurrent challenges of industrialisation and job creation, with millions entering the labour market each year. She added that high-emission industries such as cement production account for a significant share of national emissions and require structured transition strategies.
Rehman warned that evolving global trade regimes, including the European Union’s Carbon Border Adjustment Mechanism (CBAM), could affect Pakistan’s export competitiveness, particularly in textiles and apparel.
She criticised what she described as a “brochure economy”, arguing that sustainability reporting must move beyond polished disclosures towards verifiable compliance systems.
Rehman also called for a national ESG forum bringing together policymakers, regulators, businesses and international partners to align standards and implementation frameworks.
