ABAD considers corporatisation and REITs

Business Recorder reported that the Association of Builders and Developers of Pakistan (ABAD) is weighing a shift to corporate status and REIT registration for its members. The move follows an awareness session held by the Securities and Exchange Commission of Pakistan (SECP), which the regulator described in a Wednesday statement. Commissioner Muzzafar Ahmed Mirza led the SECP team at the meeting, held at ABAD's headquarters.

Mirza outlined SECP reforms designed to simplify incorporation, sharpen regulatory clarity and bring informal businesses and partnerships into formal corporate structures. He noted that incorporation creates a distinct legal person and typically caps shareholder liability, keeping company debts apart from owners' private assets. Officials, including Karachi Company Registration Office in-charge Sidney Custodio Pereira, also demonstrated the eZfile platform, which links digitally with external registries to speed up filings.

The session also pointed out that corporate status may widen funding options at home and abroad, while boosting credibility, transparency and continuity. ABAD leaders welcomed the outreach and said members were actively weighing corporatisation and REIT registration. They agreed to coordinate with the SECP and put forward recommendations for real estate matters governed by the Companies Act, 2017.