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ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has announced the phased adoption of the IFRS Sustainability Disclosure Standards in Pakistan. The standards, which include IFRS-S1 for general sustainability-related financial information and IFRS-S2 for climate-related disclosures, will be implemented across listed companies starting from July 2025, with subsequent phases extending to 2026 and 2027.
According to Securities and Exchange Commission of Pakistan, the adoption follows extensive consultations and aims to enhance transparency and risk management in line with global practices. IFRS-S1 requires disclosures on sustainability-related risks impacting financial aspects, while IFRS-S2 focuses on climate-related risks and opportunities. The phased implementation will first apply to listed companies based on asset, turnover, and employee criteria, with unlisted licensed public interest companies included from 2027.
The SECP emphasizes the importance of these standards as part of its ESG regulatory roadmap, aiming to align Pakistan’s capital markets with international norms and promote sustainable business practices. An assurance requirement for sustainability reporting will begin in the second year of reporting, further reinforcing the commitment to standardized and comprehensive disclosure.