The State Bank of Pakistan (SBP) has issued final instructions on IFRS-9 for ensuring smooth and consistent implementation of the standard in the banking industry, with revised implementation timelines. IFRS-9 is a global standard issued by the International Accounting Standards Board (IASB). For banks having asset size of Rs500 billion or above, as per their annual financial statements, as of December 31, 2021, and for all the development finance institutions (DFIs), the SBP has set the revised implementation date as January 1, 2023. It has revised the implementation date for IFRS 9 as January 1, 2024 for all other banks and microfinance banks (MFBs). Earlier, the SBP had set a deadline of January 1, 2022 for the implementation of IFRS-9 by banks, which has now been revised on the request of banks that are facing challenges in the implementation of the new standard. The standard lays out the accounting treatment of classification, measurement of financial instruments and impairment of financial assets.
Published in The Express Tribune, July 7th, 2022.