Pakistan is strengthening its commitment to sustainable development, SME reform, and responsible innovation in digital finance, Finance Minister Senator Muhammad Aurangzeb stated during a high-level meeting with global accounting leaders. The delegation, led by Jean Bouquot, President of the International Federation of Accountants (IFAC), discussed strategic frameworks to support Pakistan’s economic resilience and modernization.
Highlighting climate change as an urgent economic reality, Minister Aurangzeb noted that recent flooding is expected to reduce Pakistan’s GDP by almost half a percentage point. He emphasized that green finance and climate-aligned policies are central to safeguarding the nation’s economic growth. The Minister pointed to ongoing initiatives, including the development of green taxonomy, sustainability disclosures, and climate-focused financial frameworks designed to integrate environmental considerations into Pakistan’s broader financial system.
In the area of digital finance, Aurangzeb detailed the country’s progress in regulating virtual assets. The Pakistan Virtual Asset Regulatory Authority, along with a newly formed crypto council, has established a licensing-based framework that incorporates Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance. The aim is to foster innovation while ensuring transparency, consumer protection, and integration of digital assets into the formal economy.
The Finance Minister also focused on the modernization of small and medium enterprises (SMEs), particularly in industrial and export clusters. He highlighted significant capability gaps in financial reporting and called for coordinated institutional support to help SMEs transition toward standardized, documented practices. According to Aurangzeb, enhancing SME reporting capacity is crucial for their integration into the formal economy and for improving Pakistan’s overall investment climate.
Jean Bouquot briefed the Minister on IFAC’s global priorities, including sustainability reporting, audit ethics, the impact of artificial intelligence on accounting, and public sector financial reforms. He noted the growing demand for non-financial assurance and stressed the need for modernized training programs and robust oversight systems to maintain credibility in financial reporting.
Auditor General of Pakistan Maqbool Ahmad Gondal updated the delegation on Pakistan’s transition from cash-based to accrual-based International Public Sector Accounting Standards (IPSAS) through new ERP systems. He highlighted that end-to-end electronic payments and receipts are expected within the current fiscal year, marking a significant step toward digital governance.
SECP Chairman Akif Saeed outlined regulatory alignment with IOSCO standards, ongoing reforms in insurance and pensions, and the phased rollout of sustainability disclosures for listed and unlisted companies. He reaffirmed Pakistan’s full adoption of International Financial Reporting Standards (IFRS), enhancing transparency and investor confidence.
Representatives from SAFA and ICMAP discussed regional cooperation, AI integration in financial training, and Pakistan’s improving economic trajectory. In closing, Finance Minister Aurangzeb reaffirmed Pakistan’s commitment to strengthening global partnerships in accounting, sustainability, and digital financial governance, underlining the government’s proactive approach toward resilient and inclusive economic growth.
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