SECP Holds High-Level Consultation on Reforming Pakistan’s Cost Audit Regime

The Securities and Exchange Commission of Pakistan (SECP) has taken a key step toward overhauling the country’s cost audit regime to make it more efficient, transparent, and business-friendly. Following earlier consultations held in Lahore and Karachi, a follow-up session took place at the SECP Head Office in Islamabad on October 27, 2025, chaired by the SECP Chairperson.

The paper was circulated and placed on the SECP’s website to obtain feedback from key stakeholders across various sectors. The responses received reflected a broad range of perspectives, with the majority of participants considering the existing cost audit framework as a compliance-heavy requirement with limited practical or economic utility.

The session was attended by representatives from the Institute of Chartered Accountants of Pakistan (ICAP), the Institute of Cost and Management Accountants of Pakistan (ICMAP), the Ministry of Industries and Production (MoI), the Competition Commission of Pakistan (CCP), and other industry stakeholders. The participants engaged in detailed deliberations on aligning the cost audit regime with international standards and enhancing its relevance to regulatory and policy objectives.

According to the SECP,

“The goal is to align the cost audit regime with international best practices, ensuring it supports regulatory oversight without burdening businesses.”

It was unanimously agreed that ICAP and ICMAP would jointly undertake a comprehensive review and furnish detailed recommendations to the SECP after consultation with relevant stakeholders, where necessary, within three weeks. The review will focus on the formats of cost accounting statements to be annexed with the audited financial statements, the scope of the audit of these annexed statements, and the mechanism for filing them with sectoral regulators. The aim is to develop a balanced and efficient cost audit framework that ensures transparency and accountability while avoiding duplication of reporting requirements and facilitating ease of doing business in Pakistan.

The SECP reaffirmed its commitment to continuing an inclusive and consultative approach to regulatory reforms, ensuring that the cost audit regime effectively serves both regulatory needs and the business environment in Pakistan.