The Securities and Exchange Commission of Pakistan has notified the adoption of the IFRS Sustainability Disclosure Standards in Pakistan on a phased basis, covering IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. Issued by the International Sustainability Standards Board and recommended for adoption by the Institute of Chartered Accountants of Pakistan, IFRS S1 requires disclosure of sustainability-related risks and opportunities that could reasonably be expected to affect cash flows, access to finance or cost of capital, while IFRS S2 sets requirements for identifying, measuring and disclosing climate-related risks and opportunities. The notification follows a consultation process that included market-readiness analysis, awareness sessions with ICAP, and stakeholder surveys and consultation sessions. Implementation is phased for listed companies based on criteria including total assets, turnover and number of employees, with the first phase applying to annual reporting periods beginning on or after 1 July 2025 and subsequent phases starting from July 2026 and 2027. Unlisted licensed public interest companies will also be brought into scope in the third phase starting in 2027, and auditor assurance over sustainability reporting will be required from the second year of reporting.
Securites & Exchange Commission of Pakistan 2025-01-01
Securities and Exchange Commission of Pakistan adopts IFRS Sustainability Disclosure Standards with phased rollout starting 1 July 2025
The Securities and Exchange Commission of Pakistan will adopt IFRS Sustainability Disclosure Standards, including IFRS S1 and IFRS S2, for listed companies starting July 2025. IFRS S1 mandates disclosure of sustainability-related financial risks, while IFRS S2 focuses on climate-related risks. Unlisted licensed public interest companies will be included in 2027, with auditor assurance required from the second year of reporting.