Data gaps linked to governance

According to The Express Tribune, Lucia Real Martin, an executive director at London-based ACCA, said Pakistan can narrow large budget discrepancies by strengthening its governance structures, tighter rules and clearer reporting. The remark came in an interview that addressed the Rs853 billion statistical gap reported across the federal government and four provinces' accounts for fiscal year 2025-26. Martin argued that institutions need staff who understand what they must disclose, not just the will to be transparent.

Separately, the Cabinet Committee on SOEs eased IFRS requirements the previous week, a move that shields energy firms and commercial banks from booking losses tied to circular debt. She said global standards remain the benchmark, though countries can adapt them to local conditions as long as confidence is not eroded. She also cautioned that moving away from global norms to build a separate local system would make it harder to keep domestic and global investment connected.

The finance ministry's Central Monitoring Unit had earlier advised against the change, yet the committee did not heed that counsel. It also warned that receivables once treated as guaranteed now trigger direct impairment charges, which expose the fiscal system to wider interdependence. She added that just 22,000 active professional accountants work in Pakistan, which is not enough for the government's services export ambitions.