Pakistan has made the International Sustainability Standards Board’s standards mandatory. The SECP adopted IFRS S1 (general sustainability disclosures) and IFRS S2 (climate-related disclosures) in phases, and the second phase began with reporting periods starting on 1 July 2026. This guide sets out who is covered, from when, and how to prepare.
What was adopted
By an order of 31 December 2024 under section 238 of the Companies Act 2017, the SECP mandated IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, and IFRS S2, Climate-related Disclosures (SECP press release; IFRS Foundation, Pakistan jurisdiction profile).
Who is covered, and when
| Phase | Reporting periods beginning on or after | Companies covered |
|---|---|---|
| I | 1 July 2025 | Listed companies meeting any two of: turnover above Rs 25 billion in the last two consecutive years, more than 1,000 employees, total assets above Rs 12.5 billion |
| II | 1 July 2026 | Listed companies meeting any two of: turnover above Rs 12.5 billion, more than 500 employees, total assets above Rs 6.25 billion |
| III | 1 July 2027 | All other listed companies, and non-listed public interest companies licensed or registered with the SECP |
Source: IFRS Foundation, Pakistan jurisdiction profile. Early application is permitted and encouraged.
Reliefs and assurance
- For the first annual reporting period, companies may publish the sustainability report separately within nine months of the financial year end.
- Assurance on the disclosures is required from the second year of reporting.
What the standards ask for
IFRS S1 requires disclosure of sustainability-related risks and opportunities that could reasonably be expected to affect a company’s prospects, organised around governance, strategy, risk management, and metrics and targets. IFRS S2 applies the same structure to climate: physical and transition risks, the resilience of the strategy, greenhouse gas emissions and climate targets. Both are designed to sit alongside the financial statements, for investors.
How to prepare
- Confirm your phase against the thresholds above, using the last two years of figures.
- Run a gap assessment of current reporting, board oversight and data systems against IFRS S1 and S2.
- Identify material risks and opportunities for your sector and value chain.
- Build the data, starting with greenhouse gas emissions, which take the longest to collect reliably.
- Plan for assurance from the second year, so that processes and evidence are audit-ready.
For the wider policy context, see PIVRA’s report Embedding ESG in Pakistan’s Sustainable Development Agenda and our discussion paper on Pakistan’s first homegrown ESG index.
How PIVRA can help
PIVRA’s ESG and sustainability advisory covers gap assessments against IFRS S1 and S2, materiality assessments, drafting of sustainability reports and SDG alignment, alongside your auditors. Request a quote.