Pakistan Railways to Introduce IFRS-Based Financial Audit for First Time

• Pakistan Railways will have its financial statements audited under International Financial Reporting Standards (IFRS) for the first time in its history.
• An internationally reputable chartered accountancy firm will be appointed to audit the organisation’s financial statements for the fiscal year 2025-26.
• The government aims to strengthen financial transparency, eliminate corruption and improve accountability through independent auditing and institutional reforms.

Pakistan Railways has announced a major financial reform initiative, deciding to have its financial statements audited in accordance with International Financial Reporting Standards (IFRS) for the first time in the organisation’s history.

The decision is aimed at improving financial transparency, strengthening accountability and introducing internationally recognised financial reporting practices across the national railway organisation.

Federal Minister for Railways Hanif Abbasi announced that a reputable international chartered accountancy firm would be engaged to conduct an independent audit of Pakistan Railways’ financial statements for the fiscal year 2025-26.

The minister said the initiative would help establish greater financial discipline within the organisation while ensuring that its financial records and reporting practices meet internationally recognised standards.

According to Abbasi, the appointment of the auditing firm will be carried out through a transparent and merit-based selection process, strictly following the rules established by the Public Procurement Regulatory Authority (PPRA).

The entire procurement procedure will be conducted through the electronic Pakistan Acquisition and Disposal System (e-PADS), ensuring transparency and fairness in the selection of the independent auditing firm.

The move forms part of a broader reform programme designed to improve Pakistan Railways’ financial management, strengthen internal controls and promote institutional accountability.

The initiative will also support compliance with the State-Owned Enterprises (SOE) Act, 2023, which provides a framework for improving governance, financial oversight and operational accountability in government-owned organisations.

Abbasi emphasised that the findings of the independent audit would play an important role in determining future administrative and financial decisions within Pakistan Railways.

He said the government would take strict measures based on the audit report, particularly in areas where financial irregularities, weaknesses in internal controls or shortcomings in accountability are identified.

The railway minister maintained that there would be no compromise on financial transparency and that every rupee belonging to Pakistan Railways would be properly accounted for.

He further stated that eliminating corruption, improving financial oversight and ensuring responsible management of public resources remained among the government’s highest priorities.

Abbasi also highlighted the federal government’s commitment to reforming Pakistan Railways, saying Prime Minister Shehbaz Sharif was personally monitoring the organisation’s performance and overseeing the implementation of its ongoing reform agenda.

The minister said the government’s focus was on strengthening institutional governance and ensuring that Pakistan Railways operates under a more transparent and accountable financial management system.