Companies in Pakistan have been deemed to be “moderately transparent” in corporate reporting, according to the Transparency in Corporate Reporting Assessment (TRAC) report by Transparency International Pakistan (TIP).

According to a statement issued on February 10, the report assessed the top 69 publicly listed companies on the Pakistan Stock Exchange (as per market capitalisation) on their transparency in the disclosure of information.

It said that the assessment scored and ranked companies on five different thematic areas crucial to fighting and preventing corruption namely: “Reporting on anti-corruption programmes, organisational transparency, disclosure of key financial information in domestic operations, reporting on gender and non-discrimination policies, human rights and corporate responsibility.”

The report noted that the lowest average score, 47.28 per cent, was observed in anti-corruption programmes, reflecting partial transparency, the statement said.

It added that that companies on average were “moderately transparent” in corporate reporting, with a score of 7.23 out of 10, where 0 was the “least transparent” while 10 was “fully transparent”.

According to the statement, companies that recorded the highest overall scores in the assessment were Lucky Core Industries, Allied Bank Limited and Oil and Gas Development Company Limited.

“However, none of the companies achieved a full overall score for transparency in disclosure practices,” the statement said.

The average score for reporting on anti-corruption programmes in the TRAC category was merely 47.28pc, the lowest among all evaluated categories, reflecting that companies were only partially transparent in their disclosure practices, it said.

In the anti-corruption programmes category, it said Colgate-Palmolive (Pakistan) Limited, MCB Bank Limited, Allied Bank Limited and Engro Corporation Limited achieved the highest score.

The statement said that it was “important to note that the TRAC report does not assess the implementation of companies’ anticorruption policies or programmes”.

“The scores reflect only the extent of reporting, not the effectiveness of the practices themselves,” it said.

“As such, a lower score does not necessarily indicate unethical behaviour or wrongdoing, nor does a higher score confirm robust adherence to ethical standards,” it added.

It said that as the country continued to navigate economic challenges, transparency and accountability were crucial for sustainable growth and investor confidence.

“Recognising this need, the report assesses disclosure in key areas essential for combating corruption,” the statement said, adding that companies that proactively disclosed information — even beyond legal requirements — demonstrated a commitment to ethical business practices and corporate accountability.

Quoting TIP Executive Director Kashif Ali, the statement said, “As regulatory bodies and international financial institutions emphasise governance improvements as a key factor for economic recovery, there is a growing need for reforms in corporate reporting practices.”

“Through this assessment, TIP aims to encourage the private sector to lead by example, fostering an environment where businesses operate with openness, accountability, and zero tolerance for corruption.”

He said that the report provided detailed recommendations for companies on how to improve their disclosure practices which would lead to a better score.

According to the statement, TIP Chairman Justice Zia Perwez remarked: “As Pakistan navigates critical economic challenges, the need for corporate integrity and transparency has never been more pressing. The path to recovery lies in businesses that embrace openness, accountability, and ethical leadership—values that strengthen not just reputations but the economy as a whole.”

Last week, Transparency International said that Pakistan’s ranking on the Corruption Perception Index 2024 dropped by two spots from 133 in 2023 to 135 in 2024 out of 180 countries.