Karachi: In a significant move towards promoting workplace equality, the Securities and Exchange Commission of Pakistan (SECP) has mandated all listed companies to disclose gender pay gap data in their annual reports. This directive is part of Circular 10 of 2024, issued on April 17, 2024, and emphasizes the importance of transparency in compensation practices.

The SECP's circular follows the Pakistan Stock Exchange's (PSX) Notice No. PSX/N-1140, dated November 26, 2024, reminding listed companies of their obligation to comply with this new requirement. The circular includes a suggestive format for the gender pay gap statement, which companies are encouraged to use as a guide.

The initiative is part of a broader effort to address gender disparities in the workplace and ensure fair compensation practices across all sectors. By making gender pay gap data publicly available, the SECP aims to hold companies accountable and foster an environment of equality and inclusivity.

According to information available from the Pakistan Stock Exchange (PSX), the emphasis is on ensuring that companies comply with the SECP circular both in letter and spirit. This move is expected to provide investors and stakeholders with valuable insights into the corporate governance practices of listed companies and promote confidence in the market.

The requirement for gender pay gap disclosure is anticipated to have a profound impact on the designated market category, as companies will now have to assess and report their compensation structures. This transparency is expected to drive positive change and encourage companies to take proactive measures to address any identified pay disparities.

As the deadline for compliance approaches, all listed companies are urged to prepare their annual reports in accordance with the SECP guidelines. The attached circular and suggestive format aim to assist companies in this process, ensuring that they meet the regulatory requirements and contribute to a more equitable business environment in Pakistan.