The Institute of Chartered Accountants of Pakistan (ICAP) is the premier regulatory and professional body for chartered accountants in Pakistan, offering the Chartered Accountancy qualification (CA). Founded in 1961, under the Chartered Accountants Ordinance, 1961 to regulate the profession of accountancy in the country, the body had 9,669 members and more than 70,000 students at year-end 2023.[1][2]
The Federal Ministry of Commerce, the then regulatory body of the accounting profession, inherited just 106 qualified accountants. A new set of rules known as the Auditors Certificates Rules, 1950 were published in the Gazette of Pakistan on December 30, 1950.[3]
ICAP was founded on 1 July, 1961 through the Chartered Accountants Ordinance, 1961 passed by the federal government in order to replace the then-existing accountancy regulatory framework formed under British colonial rule with a modern, independent, and locally governed institute.[1][3]
In 1977, a formal function was held to lay the foundation of the Institute’s building at Clifton, Karachi. The government granted a sum of PKR 300,000 for the project.[3]
Objectives and Mandate
ICAP’s primary responsibilities include:
Regulating the profession of chartered accountancy in Pakistan.
Prescribing qualifications and conducting examinations for aspiring chartered accountants.
Setting accounting, auditing, and ethical standards for its members.
Ensuring the continuous professional development (CPD) of its members.
Advising the government on financial, taxation, and corporate matters.
Promoting high-quality corporate reporting and good governance.
Structure and Governance
ICAP is governed by a council, which comprises elected members from the profession and government-nominated representatives. The Council is responsible for formulating policies, overseeing the administration of the institute, and upholding the integrity and standards of the profession. The President of ICAP is elected by the Council members, typically for a term of one year.[4]
The operational activities are managed by the Secretary/Chief Operating Officer and various departments, which oversee areas such as education, examinations, member affairs, technical standards, and legal compliance.[4]
Education and Qualification Pathway
To become a chartered accountant in Pakistan, students must register with ICAP and complete a rigorous program that includes:
Entry Routes: Students can enter through the Foundation Route (after Intermediate/A-levels) or Graduate/Master’s Route (after a university degree).
Examinations: The ICAP qualification comprises four stages – Assessment of Fundamental Competencies (AFC), Certificate in Accounting and Finance (CAF), Certified Finance and Accounting Professional (CFAP), and Multi-subject Assessment (MSA).
Training: Practical training with an ICAP-approved accounting firm or organization is mandatory and spans a period of 3.5 to 4 years.
Ethics and CPD: Students must complete ethics modules and, after qualification, continue professional development throughout their careers.
Membership and Recognition
ICAP members are entitled to use the designation ACA (Associate Chartered Accountant) and, after fulfilling experience requirements, FCA (Fellow Chartered Accountant). As of 2023, ICAP has over 9,106 members working in Pakistan and across the globe in leadership roles in corporate entities, regulatory bodies, government departments, and multilateral organizations.[2]
ICAP’s qualification is internationally recognized, and its members often work in countries like the United Arab Emirates, Saudi Arabia, the United Kingdom, Canada, and Australia, among others.[2]
International Affiliations
ICAP is an active member of various prestigious international and regional organizations, including:
International Federation of Accountants (IFAC)
South Asian Federation of Accountants (SAFA)
Confederation of Asian and Pacific Accountants (CAPA)
International Accounting Standards Board (IASB) (through participation in standard-setting processes)
These affiliations allow ICAP to contribute to and stay aligned with global accounting and auditing standards.
Offices and Outreach
ICAP’s head office is located in Karachi, with regional offices in Lahore, Islamabad, Multan, Faisalabad, Peshawar, and Quetta. It also has an overseas chapter for members based abroad. The institute regularly hosts seminars, workshops, and conferences to engage with stakeholders and promote professional excellence.
Publications and Research
ICAP publishes a monthly magazine titled “The Pakistan Accountant”, which features technical articles, updates on financial regulations, research, and professional insights.[5] In October 2024, ICAP published the first edition of the "CAP Coffee Table Book – Artisans of Accountancy".[6] The institute annually submits its proposals for the federal and provincial budgets.[7] Monthly newsletters from ICAP cover the latest global developments in business and finance.[8]
The institute also issues guidelines, technical releases, and best practice documents to support its members.[9][10]
History
1850–1881
In the Indian subcontinent there were a few British firms of accountants, but they were so busy that their services were not available to the general public. The public companies used to appoint a European auditor for safeguarding the interests of the European shareholders, and an Indian auditor with the objectives of safeguarding the interests of the Indian shareholders. The audit of financial statements were conducted under the Companies Act 1850.[11]
1882–1913
Then the Companies Act of 1885 was passed. Regulations 83–94 of Table A contained in the First Schedule provided for the audit of accounts of the companies adopting that table and for the appointment, remuneration and duties of the auditors. In those times, it was not necessary for an auditor to be a qualified accountant and companies used to employ lawyers as their auditors.[11]
1913–1932
On 1 April 1914, the Indian Companies Act, 1913 was passed and it was necessitated that every auditor of a public limited company must be a certified auditor by the government. The provincial governments were empowered to grant auditors' certificates but, at the same time, the central government also reserved the right to recognize members of certain professional bodies as qualified auditors without obtaining an Auditor's Certificate from the government. Consequently, the members of the English, Scottish, and Irish Institutes of Chartered Accountants and the English Society of Incorporated Accountants and Auditors were recognized as qualified auditors.
At that time there was no provision of any kind for the training and examination of the accountants. The government of Bombay was the first provincial government to take a constructive step in the direction of organizing the profession. In 1918, it instituted the Government Diploma in Accountancy called GDA and made regulations for the examination and training of those who wanted to obtain that Diploma and certificate to practice.
An Accountancy Board was set up by the Government and was attached to the Sydenham College of Commerce and Economics, Bombay. This functioned till 1932. The Board was required to register apprenticeships and conduct the required examinations. The successful candidates were granted the GDA Diploma and they could practice if they had previously received training as apprentices with a practicing accountant. The Accountancy Board was also required to advise the Government on all matters relating to accountancy and the Government.[11]
1932–1947
In 1932, the Government framed rules under Section 144 of the companies Act, 1913, called Auditors' Certificates Rules, 1932. The objectives of the rules, broadly, were to register apprenticeships, to conduct examinations, and to control and regulate the profession of auditing. The accountancy profession was then being supervised and controlled by the Ministry of Commerce of the Central Government. With a view to helping the Government in discharging the necessary responsibilities with respect to the accountancy profession, the Indian Accountancy Board was established. The Board consisted of officials and practicing accountants nominated by the Government. Later, in 1939, the appointment of a majority of the members on the Board was made on the elective principle. The Board was only an advisory body. The Auditors' Certificates Rules, 1932, required the passing of two examinations – Registered Accountants first and final. It further laid down the tenure of the prescribed training which was required to be completed during the period of apprenticeship. Provisions meant to regulate and control the profession were also contained therein.[11]
1947–1984
After independence, Pakistan adopted the Auditors' Certificates Rules 1932 with certain amendments in 1950, and thus the auditing profession was administered under the Auditors' Certificates Rules, 1950. The Rules of 1950 were generally based on the old rules with some amendments incorporated therein. A person who passed the Registered Accountants first and final examinations and who satisfied the Ministry of Commerce, Central Government of Pakistan that he had completed the prescribed practical training could have his name placed on the register maintained by the said Ministry and was entitled to use the designation 'Registered Accountant' (RA). The Companies Act, 1913, as adapted by Pakistan allowed only a Registered Accountant to act as the auditor of a public limited company, although his services could also be utilized for the audit of private companies, partnership, etc.
In 1952, the Registered Accountants formed a private body known as 'Pakistan Institute of Accountants' with the object of looking after their own interest and taking up with the Ministry of Commerce, Government of Pakistan, matters affecting the accountancy profession.
In June 1959 the Department of Accountancy was established in the Ministry of Commerce with a Controller of Accountancy to deal with the profession instead of a Section Officer.
During this period, an advisory body called the 'Council of Accountancy' was set up under Auditors' Certificates Rules, 1950 and recommended the establishment of the Institute of Chartered Accountants in Pakistan. The Government accepted the recommendations and the Department of Accountancy assisted by the officials of the Institute and a number of its members prepared the Draft Ordinance to be passed.
Kanika Jenson, 1961, received the assent of the President of Pakistan, Field Marshal General Ayub Khan on March 3, 1961 and was published in Part 1 of the Extraordinary Gazette of Pakistan on March 10, 1961. The Institute of Chartered Accountants of Pakistan came into being on July 1, 1961. A draft of the Chartered Accountants By-Laws was also prepared and published for inviting public comments. The amended version called the Chartered Accountants By-Laws, 1961 was published in Part 1 of the Extraordinary Gazette of Pakistan on July 1, 1961 and was enforced on that date. As of that date the Department of Accountancy and the Pakistan Institute of Accountants having served a very useful purpose for a long time were finally liquidated.
The Chartered Accountants By-Laws provided for the formation of regional committees to look after the interests of their members. The members are divided into two classes – namely, Associate Chartered Accountants (ACA) and Fellow Chartered Accountants (FCA).[11]
1984 to present
In December 1984, the Companies Act, 1913 was replaced by the Companies Ordinance, 1984 with an order by the President of Pakistan General Zia-ul-Haq. With this Ordinance, it was also necessitated for the manufacturing concern to prepare and maintain cost accounting records and to arrange cost audit on annual basis by a Chartered Accountant or a Cost and Management Accountant. It also lays down the requirements for the preparation of financial statements of unlisted companies. For listed companies the above Ordinance also made mandatory the National Accounting Standards (NAS) and other standards to be strictly followed while preparing financial statements.
Keeping in view the convergence, undergone by the major economies of the world such as United States of America, China and Canada, of the International Financial Reporting Standards with respective local GAAP, the demand for IFRS specialists is increasing. The Institute of Chartered Accountants of Pakistan (ICAP) has introduced a diploma in IFRS to prepare the candidates to avail such opportunities.[12]
Presidents
The following is a list of presidents of the institute:[13]
Level 1 (PRC) consists of 5 multiple-choice computer-based exams. After successfully completing Level 1, you become eligible to appear for the Level 2 (CAF) exams, which consist of a total of 8 exams, divided into 2 groups of 4. Once you pass all 8 CAF exams, you must undergo an articleship at an accounting firm or in a specific industry, with an average duration of 3 years, depending on your prior qualification. During this articleship period, you will be required to complete the remaining two levels of the program, in order for you to fully qualify.[38]
The Pakistan Accountant is the professional flagship publication of the Institute. It is intended to serve as a forum for disseminating information on auditing and accounting practices, business and finance, and topics of current national and international interest.
Through the Members Information & Education Series (MIES) the Institute hopes to promote the integration of best practices and sound judgment among members.
These publications form the body of literature that fosters the Institute's policy of promoting education and research.[44]
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