The National Assembly passed the Corporate Social Responsibility (CSR) Bill, 2026 on January 21, 2026, which seeks to provide for the first-ever formal legal framework to govern CSR activities of the for-profit companies in Pakistan. The bill mandates that all listed companies and large non-listed firms disclose their CSR activities in their audited financial statements and upload them on their official websites. It applies to all listed companies as well as large-sized non-listed companies registered with the Securities and Exchange Commission of Pakistan (SECP), but will not apply to non-profit companies incorporated under Section 42 of the Companies Act, 2017.
What does the bill say?
Though the bill encourages companies to allocate at least one percent of their net profit after tax, to be spent on CSR activities, it does not provide for a mandatory threshold for CSR. It also encourages companies to carry out CSR projects in the regions where they operate, benefiting local communities directly.
Among the mandatory requirements provided for in the bill, a key component is the disclosure of CSR activities. Companies will be required to include this information in their annual audited financial statements submitted to the SECP as well as upload it on their websites. Companies that do not disclose their CSR actions as required will be subject to a fine of PKR 500,000, with an additional daily fine of PKR 1,000 for each day of continued non-compliance.
The bill also requires companies to formulate a CSR policy, which must be uploaded to the company’s website. Such a policy must detail the amount allocated to CSR, specify the geographical focus, and outline the nature of the activities undertaken. As an incentive, the bill introduces that the amounts spent on CSR will be considered as deductible expenditures, reducing the tax burden on companies. In addition to establishing a legal framework for CSR activities, the bill authorizes the SECP to oversee and implement the CSR requirements and formulate rules and regulation in this regard.
What is the existing CSR framework?
Currently, there is no explicit legal framework covering CSR functions of companies. However, the Supreme Court judgment in 2013 required companies to publish annual reports regarding their social welfare responsibilities. Other than the case law, CSR remains a voluntary framework under the Companies (CSR) General Order 2009 and the 2013 Voluntary Obligations, which provide the nature of activities to be covered under CSR. These orders were issued under the Companies Ordinance, 1984, which was later replaced by the Companies Act, 2017. The Companies Act, 2017 mentions CSR only in one instance, where it requires listed companies to include their CSR activities in the annual business review to be submitted to the SECP. No such requirements exist for private companies or public companies. Listed companies are those whose shares are registered and traded on a public stock exchange.
What is the current status of the bill?
The CSR Bill 2026 was introduced as a Private Member’s Bill by PPPP lawmaker Nafisa Shah on February 11, 2025. It was referred to the Standing Committee on Finance and Revenue, which considered it in meetings held on December 3 and 9, 2025. After review, the committee recommended amendments and passed the bill. The bill has now passed through the National Assembly, incorporating these committee recommendations. It will be transmitted to the Senate for consideration and passage, where it will go through the same process before being sent to the President for assent.
