Pakistan-listed firms score 66.7% on transparency; human rights, ESG lag: TRAC 2026

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Pakistan-listed firms score 66.7% on transparency; human rights, ESG lag: TRAC 2026

Synopsis

Pakistan's biggest corporate transparency audit just got bigger — and bleaker. With 104 listed firms averaging only 66.73%, down from 72.3% previously, TRAC 2026 reveals that human rights and ESG disclosures remain the glaring blind spots of Pakistan's corporate sector, even as financial reporting stays robust. Not one company achieved a perfect score.

Key Takeaways

Transparency International Pakistan's TRAC 2026 evaluated 104 Pakistan Stock Exchange-listed companies, up from 69 in the previous edition.
The average transparency score fell to 66.73 per cent (6.67/10), down from 72.3 per cent previously.
Human rights and CSR disclosures scored the lowest at 45.98 per cent ; ESG disclosures averaged 47.84 per cent .
OGDC (92.71%), Fauji Cement (91.67%), and Sazgar Engineering Works (91.04%) were the top performers; no company achieved a perfect score.
Organisational and domestic financial transparency were the strongest categories, both averaging over 92 per cent .
Disability inclusion and grievance mechanism disclosures were flagged as particularly underdeveloped.

Pakistan's publicly listed companies are falling short on corporate accountability, with 104 firms evaluated in Transparency International Pakistan's latest assessment averaging just 66.73 per cent — a notable decline from the 72.3 per cent recorded in the previous edition. The Transparency in Corporate Reporting Assessment (TRAC) 2026, published on 25 October 2026, flags persistent and deepening gaps in human rights disclosures, ESG reporting, and anti-corruption programmes across companies listed on the Pakistan Stock Exchange.

Overall Performance and Top Scorers

The assessment evaluated 104 public limited companies — up from 69 in the previous edition — and awarded an average score of 6.67 out of 10. Not a single company achieved a perfect transparency score. The top performers were Oil and Gas Development Company (OGDC) at 92.71 per cent, Fauji Cement Company Limited at 91.67 per cent, and Sazgar Engineering Works Limited at 91.04 per cent. Despite leading the pack, even these firms fell short of full transparency across all assessed categories.

Where Companies Fall Shortest

Human rights and corporate social responsibility (CSR) disclosures emerged as the weakest area, with an average score of just 45.98 per cent. ESG-related disclosures followed at 47.84 per cent, while anti-corruption programme transparency averaged 53.41 per cent. The report assessed human rights due diligence, child labour prevention, employee safety, wage payment systems, and grievance procedures within the human rights and CSR category. Fauji Cement was the sole company to achieve full transparency in this category.

Anti-corruption reporting showed particular weaknesses in employee training disclosures, communication of internal anti-corruption policies, and mechanisms available for reporting corruption-related concerns. OGDC, Fatima Fertiliser Company Limited, Pakistan Tobacco Company Limited, and Lucky Core Industries Limited were the strongest performers in anti-corruption disclosures.

Where Companies Perform Well

In contrast, companies displayed strong performance in organisational and financial transparency. Organisational structure disclosures averaged 92.49 per cent, while domestic financial reporting scored 92.50 per cent — both placing in the assessment's highest transparency range. This suggests that while listed firms meet baseline financial disclosure norms, their non-financial and social accountability reporting lags significantly behind.

Gender Equality and Inclusion Gaps

The TRAC 2026 report also reviewed disclosures related to gender equality, non-discrimination, and disability inclusion, where companies averaged 68.11 per cent. The report highlighted specific shortcomings in disability inclusion initiatives and the public disclosure of grievance mechanisms for reporting discriminatory practices — areas that remain largely underdeveloped across the sample.

What the Decline Signals

The overall average drop from 72.3 per cent to 66.73 per cent is notable given that the sample size expanded from 69 to 104 companies. This expansion partly explains the decline, as newly included firms may have weaker disclosure practices. However, the persistent underperformance in ESG and human rights categories points to a structural, sector-wide reluctance to adopt globally recognised non-financial reporting standards. This comes amid growing international pressure on emerging-market corporates to align with ESG and UN Guiding Principles on Business and Human Rights frameworks.

Point of View

The persistent sub-50% scores on human rights and ESG reveal that Pakistan's corporate sector treats non-financial disclosure as optional window-dressing rather than a governance obligation. The irony is sharp: financial transparency scores above 92%, meaning these companies know how to disclose — they simply choose not to apply the same rigour to labour rights, environmental accountability, and anti-corruption. As global investors increasingly screen on ESG criteria, Pakistan-listed firms risk capital market marginalisation unless regulators move from voluntary guidelines to mandatory non-financial reporting standards.
NationPress
25 Oct 2026

Frequently Asked Questions

What is the TRAC 2026 report on Pakistan's corporate transparency?
The Transparency in Corporate Reporting Assessment (TRAC) 2026 is Transparency International Pakistan's evaluation of corporate disclosure practices among 104 public limited companies listed on the Pakistan Stock Exchange. It scores firms across categories including organisational transparency, financial reporting, ESG disclosures, human rights, anti-corruption, and gender equality.
How did Pakistan's listed companies perform in TRAC 2026?
They averaged 66.73 per cent (6.67 out of 10), a decline from the 72.3 per cent average in the previous edition, which assessed 69 companies. No company achieved a perfect score; OGDC, Fauji Cement, and Sazgar Engineering Works were the top performers.
Which areas had the weakest transparency scores?
Human rights and CSR disclosures scored the lowest at 45.98 per cent, followed by ESG-related disclosures at 47.84 per cent and anti-corruption programme transparency at 53.41 per cent. These categories highlight the most significant gaps in Pakistan's corporate accountability landscape.
Which companies performed best in the TRAC 2026 assessment?
OGDC led with 92.71 per cent, followed by Fauji Cement Company Limited at 91.67 per cent and Sazgar Engineering Works Limited at 91.04 per cent. Fauji Cement was the only company to achieve full transparency specifically in the human rights and CSR category.
Why does the overall score matter for investors and regulators?
The declining average score signals that Pakistan's corporate sector is not keeping pace with global non-financial reporting standards, which increasingly influence ESG-linked capital flows. Persistent gaps in human rights, anti-corruption, and ESG disclosures can deter foreign institutional investors and raise governance risk assessments for listed firms.
Nation Press
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