The Securities and Exchange Commission of Pakistan (SECP) has held a high-level consultation session to discuss major reforms in Pakistan’s cost audit regime. The meeting took place at the SECP Head Office in Islamabad on October 27, 2025, and was chaired by the SECP Chairperson.
This session is part of SECP’s ongoing efforts to modernize the cost audit framework. The initiative began with a Consultation Paper on the Cost Audit Regime in Pakistan, issued in January 2025. The paper invited feedback from professional bodies, regulators, and industrial representatives to review the effectiveness and relevance of the current framework.
Earlier sessions were also conducted in Lahore and Karachi, where stakeholders shared their views on the existing system. Most participants agreed that the current regime is too focused on compliance and offers limited practical or economic benefit.
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 organizations attended the Islamabad session.
During the meeting, participants emphasized the importance of aligning Pakistan’s cost audit standards with international practices. They also discussed making the regime more useful for policy formulation and regulatory decisions.
It was decided that ICAP and ICMAP would jointly conduct a detailed review and present their recommendations to the SECP within three weeks. The review will cover the formats of cost accounting statements attached to financial reports, the scope of audits, and the mechanism for submitting them to regulators.
The SECP stated that the ultimate goal is to develop a transparent, efficient, and balanced cost audit framework. The reformed system aims to enhance accountability, reduce duplication in reporting, and support ease of doing business in Pakistan.
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This initiative highlights SECP’s continued commitment to improving corporate governance and strengthening Pakistan’s financial reporting environment.
