MODERNIZING CORPORATE LAW IN PAKISTAN: ADDRESSING DIGITAL CHALLENGES AND LEVERAGING OPPORTUNITIES FOR SUSTAINABLE GROWTH

Abstract

The rapid advancements in digital technology are reshaping corporate practices globally, necessitating a corresponding evolution in legal frameworks. In Pakistan, corporate law remains rooted in traditional systems, leaving significant gaps in addressing the digital transformation of business activities. This research investigates the challenges posed by digitalization, including cybersecurity risks, the regulation of e-commerce, and the use of digital platforms in corporate governance. It also explores the opportunities offered by technological advancements, such as improved transparency, efficiency, and the promotion of digital entrepreneurship. The purpose of this study is to evaluate the existing corporate legal framework in Pakistan, identify its limitations in the context of digitalization, and propose practical reforms to foster sustainable growth. Adopting a mixed-method research design, the study includes a comprehensive literature review, case studies of successful corporate law reforms in other countries, and a comparative analysis of global best practices. Key findings indicate that while digitalization has the potential to significantly enhance Pakistan’s corporate ecosystem, gaps in legal recognition of digital contracts, inadequate cybersecurity laws, and regulatory inertia are critical barriers. The study proposes integrating digital governance into corporate law, drafting robust data protection policies, and creating a supportive environment for startups and Small and Medium-sized Enterprises (SMEs). Ultimately, this research emphasizes the need for a forward-looking legal framework to align Pakistan’s corporate sector with the demands of a technology-driven global economy.