Railways to adopt IFRS for financial audit

Lahore, Pakistan recently witnessed a significant shift in financial practices as the Pakistan Railways announced its decision to adopt International Financial Reporting Standards (IFRS) for its first-time financial audits. Federal Minister for Railways, Hanif Abbasi, unveiled this groundbreaking move at a press conference, expressing the organization's commitment to bolstering financial transparency, accountability, and good governance.

Abbasi revealed that an internationally renowned chartered accountancy firm would be hired to scrutinize the railway organization's financial statements for the fiscal year 2025-26. The selection process for the audit firm adhered strictly to merit and in compliance with the Public Procurement Regulatory Authority (PPRA) rules, ensuring a fair and transparent selection procedure. The entire procurement process would be carried out through the e-PADS portal, further cementing the railway's dedication to transparency.

The implementation of IFRS compliance forms part of the broader efforts undertaken by Pakistan Railways to enhance financial discipline, reinforce internal controls, and increase institutional transparency, in line with the State-Owned Enterprises (SOE) Act, 2023. Abbasi emphasized that the independent audit report would have far-reaching implications, with stringent actions being taken based on its findings.

He stressed that there would be no compromise on transparency and every single rupee of the organization would be accounted for diligently.

Corruption eradication and financial accountability were identified as among the government's top priorities, according to Abbasi, as he acknowledged Prime Minister Shehbaz Sharif's personal oversight of the railway's performance and the implementation of its reform agenda.