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ISLAMABAD, Dec 22 (APP):Pakistan has initiated comprehensive reforms to modernize its public sector accounting system, with the AGP commencing the process of developing new accounting standards on an accrual basis in line with International Public Sector Accounting Standards (IPSAS).
The Auditor General of Pakistan (AGP) said the initiative was aimed at strengthening transparency, fiscal discipline and public financial management across the country, a news release said on Monday.
The AGP has exercised its constitutional mandate under Article 170 of the Constitution of Pakistan to undertake a review of the existing New Accounting Model (NAM), which was introduced in 2000 and is based on cash accounting principles.
In view of evolving global standards and best international practices, the existing framework was deemed in need of further strengthening and modernization.
“The transition to accrual-based accounting will significantly enhance the quality, completeness and reliability of government financial reporting,” the Auditor General’s office said, adding that under the new system, assets, liabilities, revenues and expenditures would be recorded in a more comprehensive and accurate manner.
The statement noted that, for the first time in Pakistan’s history, public sector financial reporting would be aligned with internationally recognized IPSAS accrual standards, enabling a clearer and more realistic picture of the government’s financial position and performance.
The reform process is being carried out with technical assistance from the World Bank, reflecting international support for Pakistan’s efforts to modernize its public financial management framework.
Once finalized, the revised accounting standards would be submitted for approval of the President of Pakistan, after which they would be formally notified for implementation, the AGP said.