Recent climate shocks, including widespread flooding, are expected to trim Pakistan’s GDP growth by around 0.5%, said Finance Minister Muhammad Aurangzeb on Monday, highlighting the economic vulnerability to extreme weather events.
Aurangzeb also underscored that climate change is an urgent economic reality for Pakistan, reaffirming the government’s commitment to advancing sustainable finance, green taxonomy implementation, and climate-aligned disclosure frameworks.
He made these observations during a call-on meeting with him by a delegation led by Jean Bouquot, President of the International Federation of Accountants (IFAC), accompanied by Ashfaq Yousaf Tola, President of the South Asian Federation of Accountants (SAFA), Humayun Kabeer, VP SAFA, Saifullah, President ICAP, and Ghulam Mustafa Qazi, President ICMAP, at the Finance Division today, read a statement.
The meeting was also attended by Auditor General of Pakistan Maqbool Ahmad Gondal, Chairman of the Securities and Exchange Commission of Pakistan (SECP) Akif Saeed, and senior officials of the Ministry of Finance.
Floods 2025: Pakistan faces $1.4bn economic loss, agriculture hit hardest
The finance minister welcomed the visiting delegation and appreciated the global role played by IFAC in strengthening the accounting profession, promoting international standards, and advancing transparency and trust in financial reporting.
He noted that Pakistan’s sustainability agenda, climate finance commitments, and green economic initiatives align with the issues raised by the IFAC President.
“Aurangzeb referred to Pakistan’s acute exposure to climate shocks, highlighting that recent flooding alone is expected to shave half a percentage point from GDP growth,” read the statement.
In this context, he reaffirmed Pakistan’s commitment to advancing green finance initiatives, the implementation of the national green taxonomy, and the roll-out of sustainability frameworks through the State Bank of Pakistan.
He also underscored the importance of enabling SMEs to formalise their financial systems and improve disclosure capacity, particularly in industrial and export-oriented clusters where awareness and capability challenges persist. He emphasised that coordinated institutional support will be essential to ensure their smooth transition to modern reporting and documentation practices.
The finance minister further outlined Pakistan’s progress in regulating emerging technologies. With an increasing number of Pakistanis participating in global virtual asset markets, the government has proactively established the Pakistan Virtual Asset Regulatory Authority and introduced a crypto council to build a licensing-based, KYC- and AML-compliant regulatory regime that integrates innovation into the formal economy.
Earlier, Jean Bouquot briefed the finance minister on IFAC’s mission to act as the global voice of the accounting profession, with 188 member bodies across 143 jurisdictions.
He highlighted IFAC’s priorities in sustainability standards, audit quality, ethics, the impact of AI on the profession, capacity building for small and medium practitioners, and support for public sector accounting reforms.
Auditor General Maqbool Ahmad Gondal informed the delegation about Pakistan’s transition from cash to accrual-based IPSAS standards through new ERP systems and digital reforms that aim to achieve end-to-end electronic payments and receipts within the current fiscal year.
He noted that these steps will significantly enhance public financial transparency and international confidence in Pakistan’s fiscal reporting.
SECP Chairman Akif Saeed briefed the participants on Pakistan’s regulatory alignment with international bodies, including IOSCO, and highlighted reforms in insurance, pensions, and capital markets.
Ashfaq Yousaf Tola and Hamayun Kabeer highlighted SAFA’s ongoing regional cooperation efforts, the challenges posed by geopolitical constraints, and the support extended by the Government of Pakistan during the current SAFA presidency.
ICMAP President Ghulam Mustafa Qazi reaffirmed the institution’s support to the government in training, capacity building, and integrating modern technologies such as AI into financial education. He expressed confidence in Pakistan’s improving economic trajectory and assured continued institutional cooperation.
