The Auditor General of Pakistan has initiated work on developing new accrual-based accounting standards in line with the International Public Sector Accounting Standards as part of the government’s public finance reform agenda.
In a statement issued on Monday, the AGP said the reforms are aimed at improving transparency, fiscal discipline, and public financial management. The process involves a review of Pakistan’s existing accounting model under the constitutional mandate provided by Article 170 of the Constitution.
The AGP said the new accounting standards will be implemented after approval by the President of Pakistan. The transition is being carried out with technical assistance from the World Bank.
At present, government accounts in Pakistan are maintained on a cash basis, under which transactions are recorded only when payments are made or received. This system has been in place since 2000.
Under the proposed reforms, the accounting framework will shift to an accrual basis, meaning financial transactions will be recorded when they occur, regardless of when cash is exchanged. The AGP said this would provide a more comprehensive view of government assets, liabilities, income, and expenditure.
According to the statement, the revised framework will apply uniformly to federal, provincial, and local governments. The AGP said the move would improve the quality and reliability of financial reporting and align Pakistan’s public accounts with internationally recognised standards.
