The Ministry of Finance has initiated a project to develop new public accounting standards for Pakistan, transitioning from the existing New Accounting Model (NAM) to a modern framework based on International Public Sector Accounting Standards (IPSAS) on an accrual basis.
In this effort, the government has partnered with the World Bank to implement reforms in the country’s public financial management, aiming to enhance transparency and accountability.
The Auditor-General of Pakistan (AGP) has already begun revising the existing NAM, which has been in place since 2000 and operates on a cash-based accounting system.
While NAM has served as the national framework for government finances, the need for an updated framework has grown due to the evolving global financial management practices.
This reform aims to improve the reliability and transparency of financial reporting and provide a clear view of government assets, liabilities, revenues, and expenditures.
The new system will apply across federal, provincial, and local governments, ensuring consistency, comparability, and enhanced fiscal transparency.
