Pakistan advances green finance, SME

December 01, 2025 (MLN): Pakistan is advancing sustainable finance, supporting SME financial formalization, and regulating digital assets to integrate innovation into the formal economy, Finance Minister Senator Muhammad Aurangzeb said during a meeting with global and regional accounting organizations.

Aurangzeb highlighted Pakistan’s vulnerability to climate shocks, noting that recent floods are expected to reduce GDP growth by 0.5% points, according to the press release.

In response, the government is promoting green finance initiatives, implementing a national green taxonomy, and rolling out sustainability disclosure frameworks through the State Bank of Pakistan.

He emphasized the importance of enabling SMEs, particularly in industrial and export-oriented clusters, to formalize financial systems and improve disclosure capacity.

Coordinated institutional support, Aurangzeb said, is essential to help SMEs transition to modern reporting and documentation practices.

On emerging technologies, Aurangzeb said Pakistan has established the Pakistan Virtual Asset Regulatory Authority (PVARA) and a crypto council to oversee virtual assets under a licensing-based, KYC- and AML-compliant framework.

These steps aim to integrate digital finance innovation into the formal economy as participation in global virtual asset markets rises.

The meeting was attended by IFAC President Jean Bouquot, SAFA President Ashfaq Yousaf Tola, SAFA VP Humayun Kabeer, ICAP President Saifullah, ICMAP President Ghulam Mustafa Qazi, Auditor General of Pakistan Maqbool Ahmad Gondal, SECP Chairman Akif Saeed, and senior Ministry of Finance officials.

Bouquot briefed the minister on IFAC’s role as the global voice of the accounting profession, representing 188 member bodies across 143 jurisdictions.

He highlighted IFAC priorities in sustainability standards, audit quality, ethics, AI impact, capacity building for SMEs, and public sector accounting reforms, noting the growing global need for training in non-financial assurance to maintain trust in integrated reporting.

Auditor General Gondal said Pakistan is moving from cash- to accrual-based IPSAS accounting standards, introducing ERP systems to achieve end-to-end electronic payments and receipts within the fiscal year, which will enhance public financial transparency.

SECP Chairman Saeed discussed Pakistan’s alignment with international standards, including IOSCO, and reforms in insurance, pensions, and capital markets.

He confirmed the phased implementation of sustainability disclosures for listed and unlisted companies and reaffirmed collaboration with ICAP and ICMAP to strengthen ESG practices and corporate reporting.

SAFA officials highlighted ongoing regional cooperation, the challenges of geopolitical constraints, and government support during Pakistan’s SAFA presidency, stressing professional collaboration to reinforce economic integration and public trust.

ICMAP President Ghulam Mustafa Qazi reiterated institutional support for training, capacity building, and integrating AI and other modern technologies into financial education, expressing confidence in Pakistan’s improving economic trajectory.

Aurangzeb thanked the delegation, reaffirming Pakistan’s commitment to strengthening global and regional accounting partnerships and enhancing financial transparency, sustainable finance, and regulatory compliance in SMEs and emerging digital markets.

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