Finance Division has revised the SOEs Ownership and Management Policy 2023 to strengthen IFRS-based financial reporting, oversight and internal controls.
ISLAMABAD: The Finance Division has amended the State-Owned Enterprises (SOEs) Ownership and Management Policy 2023 to establish a revised framework for implementing International Financial Reporting Standards (IFRS) across state-owned entities.
According to a notification issued on 2 October 2026, the amendment was approved by the Federal Government under Case No. 723/Rule-19/2026/862 dated 30 September 2026, under powers conferred by the State-Owned Enterprises (Governance and Operations) Act, 2023.
The amendment replaces paragraph 31 of the SOEs Ownership and Management Policy 2023.
Revised IFRS Framework for SOEs
Under the revised provision, “International Financial Reporting Standards” for SOEs will mean the financial reporting standards notified by the Securities and Exchange Commission of Pakistan (SECP) from time to time under Section 225 of the Companies Act, 2017.
The amendment also establishes a specific exception for entities regulated by the State Bank of Pakistan (SBP).
For such institutions, the statutory financial reporting framework prescribed by the SBP under the Banking Companies Ordinance, 1962 will take precedence.
The provision covers SBP circulars, directives and instructions, which will prevail where inconsistencies arise with other financial reporting requirements.
SECP Modifications to Apply to SOEs
The amended policy further states that any modifications or exemptions granted by the SECP to companies generally under Section 225 of the Companies Act, 2017 will also apply to SOEs registered with the SECP under the same law.
At the same time, the amendment clarifies that the revised provisions will not restrict the statutory powers, functions or instructions of the SBP concerning entities under its regulatory jurisdiction.
This provision is intended to maintain the existing regulatory authority of the central bank while establishing a broader and more consistent financial reporting framework for government-owned entities.
Finance Division to Develop Financial Management Framework
The Finance Division has also been mandated to develop a detailed financial management framework for statutory SOEs in consultation with the Auditor General of Pakistan.
The framework is expected to provide further guidance on financial management and reporting requirements for statutory state-owned entities.
The notification also requires all SOEs to establish appropriate internal audit procedures and mechanisms in accordance with Sections 19 and 20 of the SOEs Act, 2023.
The detailed implementation requirements have been outlined in Annexure 6 of the revised policy, strengthening the framework for financial reporting, oversight and internal controls across government-owned entities.
The amendment represents a further step towards establishing clearer financial reporting requirements for Pakistan’s state-owned enterprises while preserving the regulatory framework applicable to entities under the SBP.