Bridging the Accountability Gap: Corporate Prosecution and Institutional Challenges in Pakistan

Abstract

This paper offers a thorough and nuanced exploration of the legal, economic, and regulatory foundations that justify the prosecution of publicly listed companies in Pakistan. It argues convincingly that robust corporate prosecution (CP) transcends mere enforcement. It is a vital pillar of contemporary corporate governance, crucial for deterring complex white-collar crimes, protecting investor interests, and maintaining public trust in capital markets. Utilizing a doctrinal and comparative approach, the studies critically examines the normative basis for holding listed companies criminally liable, analyze the performance of present prosecutorial and statutory frameworks, uncovers structural, institutional, and normative shortcomings within Pakistan’s corporate regulatory system. By drawing on international best practices and comparative models, the article proposes contextually tailored reforms designed to improve prosecutorial consistency, bolster regulatory enforcement, and align Pakistan’s corporate accountability standards with global benchmarks of market integrity and good governance.