To bolster regulatory oversight and ensure effective implementation of international accounting standards, officers from the State Bank of Pakistan (SBP) participated in a focused two-day capacity building session on “Supervisory Assessment Methodology for the Oversight of IFRS 9 Implementation.” The training, conducted on May 21 and 22, 2025, was hosted at the National Institute of Banking and Finance (NIBAF) in Karachi and led by seasoned experts Mr. Qaimat Karim and Mr. Rasool Bakhsh.
The session was designed to enhance the supervisory capabilities of central bank officers with respect to the adoption and monitoring of the International Financial Reporting Standard 9 (IFRS 9), which deals with financial instruments. IFRS 9 has significantly reshaped the way financial institutions assess credit risk and report expected credit losses. As part of the global regulatory landscape, the standard aims to increase transparency and promote more timely recognition of financial impairments, ultimately contributing to financial stability.
Recognizing the critical role of regulators in ensuring the faithful implementation of such standards, the training focused on equipping SBP officers with the methodologies needed to effectively assess compliance among financial institutions. Participants were introduced to comprehensive frameworks for reviewing institutional models, policies, and practices in line with IFRS 9 requirements. The sessions also covered the analytical tools used in evaluating risk-based approaches to credit loss provisioning and the broader implications of IFRS 9 on bank balance sheets and financial disclosures.
Led by Mr. Qaimat Karim and Mr. Rasool Bakhsh, both of whom have extensive experience in regulatory compliance and financial reporting, the program offered a blend of theoretical background and practical supervisory insights. Their guidance enabled participants to better understand not only the technical standards of IFRS 9, but also how to critically assess implementation quality and risk alignment in real-world settings.
The initiative underscores SBP’s commitment to reinforcing supervisory excellence through targeted and timely capacity development. As the financial industry evolves and global standards continue to be adopted domestically, strengthening the oversight capabilities of regulators becomes increasingly essential. Training programs such as these ensure that regulatory staff are prepared to meet emerging challenges, particularly in areas where international standards intersect with local operational realities.
By empowering its officers with specialized training on IFRS 9 oversight, SBP is proactively positioning itself to ensure a robust and transparent banking sector. The effort also highlights NIBAF’s key role as the training arm of the central bank, facilitating critical knowledge dissemination and professional development initiatives for the broader financial ecosystem.
With the implementation of IFRS 9 representing a significant shift in financial reporting practices, the continued education of supervisors is vital for maintaining market confidence and protecting financial system integrity. As Pakistan moves towards greater alignment with international financial standards, such capacity building sessions will remain a cornerstone of effective regulatory governance.