Pakistani companies score poorly on human rights, ESG and anti-corruption disclosures

Pakistan’s listed companies remain moderately transparent in their corporate reporting, with disclosures on human rights, environmental, social and governance (ESG) issues and anti-corruption programmes among the weakest areas, according to a new assessment by Transparency International Pakistan (TIP).

ISLAMABAD: Pakistan’s listed companies remain moderately transparent in their corporate reporting, with disclosures on human rights, environmental, social and governance (ESG) issues and anti-corruption programmes among the weakest areas, according to a new assessment by Transparency International Pakistan (TIP).

The Transparency in Corporate Reporting Assessment (TRAC) 2026, which covered 104 public limited companies listed on the Pakistan Stock Exchange (PSX), recorded an average score of 66.73%, or 6.67 out of 10. The average was lower than the 72.3% recorded in the 2024 assessment, which covered 69 companies. However, the difference between the two overall averages should be treated with caution because the assessments covered different groups of companies.

Oil and Gas Development Company Limited (OGDC) achieved the highest overall score, at 92.71%, followed by Fauji Cement Company Limited at 91.67% and Sazgar Engineering Works Limited at 91.04%. No company achieved a perfect overall score, TIP said.

Human rights and corporate social responsibility (CSR) disclosures recorded the lowest average score, at 45.98%, followed by ESG reporting at 47.84% and anti-corruption programmes at 53.41%. The findings point to gaps in publicly available information on corporate accountability and responsible business practices.

By contrast, companies performed strongly in reporting their organisational structures and domestic financial information. Organisational transparency averaged 92.49%, while domestic financial reporting scored 92.50%. Both categories fell within the report’s “significant transparency” range.

Disclosure on gender, non-discrimination and disability inclusion averaged 68.11%, indicating moderate transparency. The report identified shortcomings in disability inclusion and in the disclosure of mechanisms for reporting discrimination.

In the human rights and CSR category, Fauji Cement was the only company to achieve full transparency, while 11 companies were classified as significantly transparent. The assessment examined disclosures on human rights due diligence, child labour prevention, employee safety, wage payment mechanisms and grievance procedures.

OGDC, Fatima Fertilizer Company Limited, Pakistan Tobacco Company Limited and Lucky Core Industries Limited recorded the highest scores in the anti-corruption category. The report identified weaknesses in disclosures on staff training, communication of anti-corruption policies and mechanisms for reporting suspected wrongdoing.

A comparison of the 63 companies assessed in both the 2026 and 2024 editions offered a more positive picture. Their average overall score rose from 72.01% to 78.45%, an increase of about 8.9%. TIP attributed the improvement to stronger performance on assessment questions that remained unchanged between the two editions.

The assessment was based on publicly available information, including companies’ annual reports for 2024 and 2025, official websites and other public documents. It examined eight areas of corporate disclosure, including anti-corruption programmes, organisational transparency, country-by-country reporting, domestic financial reporting, government procurement, human rights, gender and disability inclusion, and ESG disclosures.

TIP stressed that the assessment measures the extent of information companies disclose, rather than whether they actually implement the policies they report. A low score does not necessarily establish unethical conduct, just as a high score does not guarantee effective implementation.

The report said comprehensive corporate disclosure could strengthen investor confidence, improve public trust and reduce governance risks.