In a recent development, the State Bank of Pakistan (SBP) has issued a circular extending the deadline for the implementation of the International Financial Reporting Standard (IFRS 9). This decision comes after persistent efforts by the Pakistan Banks’ Association (PBA) to defer the implementation of the IFRS-9 framework.
During the PBA-SBP Coordination Meeting with the Governor of SBP on February 21, 2023, it was agreed that the PBA would provide specific recommendations on the subject to the SBP. Taking into account these discussions, the PBA suggested deferring the implementation of the IFRS-9 framework for at least one year.
Following continuous engagement between PBA and SBP, the SBP has now issued a circular on April 13, 2023, providing revised instructions to the banking industry:
- For banks with an asset size of PKR 500 billion or above as of December 31, 2022, and all Development Finance Institutions (DFIs), the implementation date has been extended from January 01, 2023, to January 01, 2024.
- The implementation deadline for all other banks and Microfinance Banks (MFBs) remains unchanged, i.e., January 01, 2024.
Source: PBA