Pakistan has amended its State-Owned Enterprises (SOEs) Ownership and Management Policy, 2023, to align the financial reporting framework for state-owned entities with International Financial Reporting Standards (IFRS).
The Finance Division issued the notification on October 2 following federal government approval on September 30. The amendment adds three new provisions to Paragraph 31 of the policy, requiring SOEs to follow financial reporting standards notified by the Securities and Exchange Commission of Pakistan (SECP) under the Companies Act, 2017.
The revised policy also states that SECP-approved amendments or exemptions applicable to companies will apply to SOEs. However, SOEs regulated by the State Bank of Pakistan will continue to follow the central bank’s regulatory framework where applicable.
For statutory SOEs, the Finance Division, in consultation with the Auditor General of Pakistan, will develop a separate financial management framework. SOEs will also be required to establish internal audit procedures in line with the SOEs Act, 2023.
The amendment comes as Pakistan continues implementing structural reforms under its IMF programme, including measures aimed at strengthening SOE governance, financial reporting, and accountability.
