Pakistan Moves from Cash to Accrual Accounting

The Auditor General of Pakistan has announced the launch of comprehensive reforms in the country’s public sector accounting system, aiming to bring it in line with international best practices. For the first time, Pakistan will shift from a cash-based accounting model to accrual-based standards, following the International Public Sector Accounting Standards (IPSAS). The reforms, initiated under the constitutional authority of Article 170, will see the development and implementation of new accounting standards after approval by the President of Pakistan. The current accounting model will be replaced to provide a more accurate and complete picture of government assets, liabilities, income, and expenditures. The transition is being supported by technical assistance from the World Bank. Once implemented, the new framework will apply uniformly across federal, provincial, and local governments. Officials from the Auditor General’s office say the new system will enhance the quality and reliability of financial information, foster greater transparency, and strengthen accountability and governance throughout the public sector.