Karachi: The Pakistan Stock Exchange (PSX) has mandated that all listed companies must disclose gender pay gap data in their annual reports and on their websites, a requirement effective from the financial year ending on or after June 30, 2024. This directive, outlined in Circular No. 10 of 2024 by the Securities and Exchange Commission of Pakistan (SECP), aims to enhance transparency and promote gender equality within the corporate sector.

According to the guidelines, the board of directors of each listed company is required to prepare a statement on the gender pay gap, utilizing a specific template suggested by the SECP. This initiative is part of the broader Prime Minister's Women Empowerment Package (PM-WEP) 2024, which seeks to advance gender diversity and equality across industries.

According to information available from the Pakistan Stock Exchange (PSX), non-compliance with this mandate, or submission of incomplete data, could result in enforcement actions by the SECP against the respective companies. The PSX has previously issued several notices, including PSX/N-1140, PSX/N-072, PSX/N-174, PSX/N358, and PSX/N-459, reiterating the importance of this disclosure and urging meticulous compliance.

The SECP's Circular No. 10 of 2024 is a continuation of efforts initiated by Circular No. 07 of 2021, which addressed gender diversity in the corporate environment. Through the exercise of powers under Section 510 of the Companies Act, 2017, the SECP has reinforced the need for transparency in pay structures to foster a more equitable workplace. This move is a significant step in aligning corporate practices with international standards of gender equality and transparency in Pakistan's designated market categories.