SECP moves to reform cost audit framework to improve transparency

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is taking steps to modernise the country’s cost audit framework after receiving widespread feedback from industry players that the current system is overly compliance-heavy and of limited practical use.

The move follows a consultation process that began earlier this year when the SECP released a paper in January 2025, inviting views from key stakeholders across various sectors. After gathering feedback online and through sessions held in Lahore and Karachi, the regulator held a follow-up meeting on October 27 at its head office in Islamabad.

The session, chaired by the SECP Chairperson, brought together representatives from the Institute of Chartered Accountants of Pakistan (ICAP), the Institute of Cost and Management Accountants of Pakistan (ICMAP), the Ministry of Industries and Production, and the Competition Commission of Pakistan (CCP). Discussions mainly focused on how to bring Pakistan’s cost audit regime closer to international best practices while making it more relevant to local regulatory goals.

Under the plan, ICAP and ICMAP will now carry out a detailed review of the existing system and submit their recommendations to the SECP within three weeks. Their report is expected to cover proposed changes to the formats of cost accounting statements, the scope of audits, and filing procedures with sectoral regulators.

Officials said the aim is to create a framework that enhances transparency, reduces duplication in reporting, and supports ease of doing business in Pakistan. The revised structure is also expected to give regulators more meaningful insights into industry costs and pricing, without placing unnecessary compliance burdens on companies.

Reaffirming its commitment to inclusive policy-making, the SECP said it would continue working with all stakeholders to ensure that the reformed cost audit framework serves both business and regulatory interests, contributing to a more efficient and transparent corporate environment in the country.