Pakistan's leading listed companies remain only moderately transparent in corporate reporting, with disclosures on human rights, environmental, social and governance (ESG) issues, and anti-corruption programmes emerging as major weaknesses, according to a new assessment by Transparency International Pakistan (TIP). The Transparency in Corporate Reporting Assessment (TRAC) 2026, covering 104 public limited companies listed on the Pakistan Stock Exchange, recorded an average score of 66.73 per cent.

The score was lower than the 72.3 per cent average recorded in the previous report, which assessed 69 companies, suggesting that disclosure practices weaken beyond the country's largest corporations. According to TIP, no company achieved a perfect transparency score, though Oil and Gas Development Company (OGDC), Fauji Cement Company Limited, and Sazgar Engineering Works Limited emerged as top performers with scores of 92.71 per cent, 91.67 per cent, and 91.04 per cent, respectively.

The assessment found the weakest disclosure in human rights and corporate social responsibility (CSR), averaging just 45.98 per cent. ESG disclosures followed at 47.84 per cent, while anti-corruption programmes averaged 53.41 per cent.

These figures underscore a significant gap in how Pakistani firms communicate their ethical and social commitments to stakeholders. Conversely, companies performed strongly in reporting organisational structures (92.49 per cent) and domestic financial information (92.50 per cent).

This indicates that while firms are adept at meeting basic regulatory and financial reporting requirements, they struggle with the qualitative aspects of corporate governance. The gender, non-discrimination, and disability inclusion category recorded an average of 68.11 per cent, highlighting gaps in grievance mechanisms.

Many companies failed to provide clear, accessible channels for employees to report issues, which remains a critical concern for international investors and local regulatory bodies. While the overall average dipped, a comparison of 63 companies assessed in both editions showed an improvement of approximately 8.9 per cent.

This suggests that while the broader pool of companies is struggling, those that have been under scrutiny for longer are gradually adopting better transparency standards. The assessment was based on publicly available information, including annual reports for 2024 and 2025.

Transparency International Pakistan has urged the Securities and Exchange Commission of Pakistan (SECP) to enforce stricter guidelines regarding non-financial disclosures to align local firms with global best practices. Experts believe that enhanced transparency is essential for attracting foreign direct investment.

As global markets increasingly prioritize ESG compliance, Pakistani firms must bridge these reporting gaps to remain competitive in the international arena. The report concludes that without a concerted effort to improve reporting on human rights and anti-corruption, Pakistani companies risk being sidelined by global supply chains that demand rigorous ethical standards and transparent governance structures.