Pakistan is facing an urgent economic crisis driven by climate change, with recent flooding alone projected to reduce GDP growth by half a percentage point.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb revealed this during a high-level meeting with international accounting leaders. In response to the country’s acute exposure to climate shocks, the minister reaffirmed the government”s commitment to advancing green economic initiatives. He highlighted the planned implementation of a national green taxonomy and the rollout of sustainability frameworks through the State Bank of Pakistan to bolster sustainable finance.
The discussion, held with a delegation led by Mr. Jean Bouquot, President of the International Federation of Accountants (IFAC), also addressed the critical need to support Small and Medium-sized Enterprises (SMEs). Mr. Aurangzeb underscored the importance of enabling SMEs, particularly in industrial and export-oriented clusters, to formalize their financial systems and improve disclosure capacity through coordinated institutional support.
Furthermore, the Finance Minister outlined Pakistan’s proactive steps in regulating emerging technologies. He noted that with a growing number of citizens participating in global virtual asset markets, the government has established the Pakistan Virtual Asset Regulatory Authority and a crypto council to integrate innovation into the formal, compliant economy via a licensing-based regime.
The meeting was convened as Mr. Bouquot, accompanied by leaders from the South Asian Federation of Accountants (SAFA), the Institute of Chartered Accountants of Pakistan (ICAP), and the Institute of Cost and Management Accountants of Pakistan (ICMAP), visited the Finance Division. The IFAC President briefed the minister on the federation”s global priorities, which include sustainability standards, ethics, the impact of AI, and public sector accounting reforms.
Auditor General Mr. Maqbool Ahmad Gondal informed the delegation of significant public financial management reforms, including a nationwide transition from cash to accrual-based accounting standards. He stated that new digital systems aim to achieve end-to-end electronic payments and receipts within the current fiscal year, enhancing fiscal transparency.
Mr. Akif Saeed, Chairman of the Securities and Exchange Commission of Pakistan (SECP), detailed the country”s regulatory alignment with international bodies and its commitment to full IFRS adoption. He explained the phased implementation of sustainability disclosures for both listed and unlisted companies, commending the collaboration with local accounting bodies in strengthening ESG practices.
Representatives from SAFA, Mr. Ashfaq Yousaf Tola and Mr. Humayun Kabeer, spoke on regional cooperation efforts, while ICMAP President Mr. Ghulam Mustafa Qazi assured the government of continued support in training and integrating technologies like AI into financial education.
The Finance Minister concluded the meeting by welcoming the global and regional partnership, reaffirming Pakistan’s dedication to strengthening its accounting frameworks in line with international standards.