The Institute of Chartered Accountants of Pakistan (ICAP) is the premier regulatory and professional body for accountants in Pakistan. It was established on 1 July 1961 as a statutory body under the Chartered Accountants Ordinance, 1961 promulgated by the President of Pakistan to oversee the regulation of accountants and development of the profession of Chartered Accountancy in Pakistan.
History
Origins of the Accountancy Profession (Pre-1932) The roots of the practice of accountancy in Pakistan lie in the era of colonialism in Britain. At that time, audits were made according to the provisions of the Companies Act 1850, and companies usually had both European and Indian auditors who represented different shareholders' parties.Saeed, Prof. Dr. Khawaja Amjad, Auditing: Principles & Procedures, Lahore: Institute of Business Management, 1993 pages 18–22.
The Companies Act 1885 introduced provisions relating to appointment, pay, and functions of auditors. It is worth mentioning that the auditors did not have to be professionally qualified accountants, and people from other professions could act as auditors.
An important point was the adoption of the Indian Companies Act, 1913, when it became obligatory for the auditor of a public limited company to have an Auditor's Certificate issued by the government. The provinces had powers to issue Auditor's Certificates, and the central government had the right to recognize as auditors members of particular professional organizations of accountants.
Professional Regulation and Institutional Development (1932–1947) The implementation of the Auditors' Certificates Rules, 1932 constituted a major milestone in the regulation of the accountancy profession. The rules brought about an organized system for qualification, examination, training, and registration of auditors. In this era, the profession was regulated by the Ministry of Commerce of the Central Government, while the Indian Accountancy Board was an advisory body in regard to issues concerning accountancy and auditing. This helped to create a professional and organized accountancy profession before the formation of Pakistan in 1947.
Development of the Profession in Pakistan (Post-1947) Since its emergence as an independent state in 1947, Pakistan had inherited a small accountancy profession where the regulatory body of the profession, the Federal Ministry of Commerce, had inherited only 106 qualified accountants. However, the regulatory control continued through the Auditors' Certificates Rules, 1950, which were based on the pre-partition model.
The year 1952 marked the formation of Pakistan Institute of Accountants by the "Registered Accountants" to promote the interest of their profession. Later, in 1959, the establishment of the Department of Accountancy at the Ministry of Commerce provided further regulation to the profession and the Council of Accountancy suggested that there should be an autonomous professional body of the accountants in Pakistan.
The culmination of all this resulted in the promulgation of the Chartered Accountants Ordinance, 1961, by the President of Pakistan, Field Marshal Muhammad Ayub Khan, and the founding of the Institute of Chartered Accountants of Pakistan (ICAP) on 1 July 1961.
The profession experienced additional development through the enactment of the Companies Ordinance, 1984, which superseded the Companies Act, 1913. The Ordinance increased the scope of work for the professional accountants by increasing the need for financial reporting and cost accounting and audit systems. This improved the regulatory system of corporate financial reports and audits and strengthened the role of the ICAP in ensuring professionalism in the field of accounting in Pakistan.
Objectives ICAP regulates the profession of chartered accountancy in Pakistan; it lays down qualification requirements, conducts examinations, awards memberships and sets standards for accounting, auditing, and ethics for its members.
Moreover, it also looks after the Continuous Professional Development (CPD) of its members and is involved in policy making in regard to various aspects of accounting, business, economy, taxation, corporate governance, and sustainable development. In addition, it gives advice to the government on financial, taxation, and corporate matters and collaborates with regulatory authorities and business community to enhance quality of corporate reporting and 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.
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.
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 – Pre Requisite Competencies (PRC), 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.
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.
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.
Presidents The following is a list of presidents of the institute: Year Name Organization 1961–1962 Syed Osman Ali First Accountant of Pakistan1962–1963 M. Ahmad Ministry of Finance (Pakistan)1963–1966 M. Aslam 1966–1969 Vaqar Ahmed 1969–1970 A. Rab 1970–1972 Vasim Aon Jafarey 1972–1973 M. Yakub 1973–1975 Ejaz Ahmed Naik1975–1978 Abdur Raouf Shaikh 1979 Aftab Ahmed Khan 1979–1983 H. U. Beg1983–1986 Irtiza Husain PricewaterhouseCoopers Pakistan1986–1988 Ebrahim Dahodwala BDO International Pakistan1988–1989 M. Afzal Munif BKR International Pakistan1989–1991 Ebrahim Sidat Ernst & Young Pakistan1991–1992 Abdul Hameed Chaudhri Hameed Chaudhri & Company1992–1993 Khalid Rafi PricewaterhouseCoopers Pakistan1993–1994 Muhammad Yousuf Adil Deloitte Pakistan1994–1996 Syed Masoud Ali Naqvi KPMG Pakistan1996–1997 Sajjad Ahmad PricewaterhouseCoopers Pakistan1997–1998 Ahmad Dawood Patel Ernst & Young Pakistan1998–1999 Najam I. Chaudhri PricewaterhouseCoopers Pakistan1999–2000 Shaukat Amin Shah M/s Amin & Co., Chartered Accountants2000–2001 Pir Mohammad A. Kaliya First Paramount Modaraba2001–2002 A. Husain A. Basrai KPMG Pakistan2002–2003 Khaliq-ur-Rahman Grant Thornton Pakistan2003–2004 Mujahid Eshai Chartac Business Services (Pvt.) Ltd.2004–2005 Zafar Iqbal Sobani Hub Power Company2005–2006 Syed Mohammad Shabbar Zaidi PricewaterhouseCoopers Pakistan2006–2007 Nasimuddin Hyder Ernst & Young Pakistan2007–2008 Imran Afzal Grant Thornton Pakistan2008–2009 Syed Asad Ali Shah Deloitte Pakistan2009–2010 Abdul Rahim Suriya A. R. Suriya & Co, Chartered Accountants 2010–2011 Shaikh Saqib Masood KPMG Pakistan2011–2012 Rashid Rahman Mir Rusell Brad Ford Pakistan2012–2013 Ahmad Saeed Mazars Consulting2013–2014 Naeem Akhtar Sheikh Hassan Naeem & Co.2014–2015 Yacoob Suttar Asia Petroleum 2015–2016 Hafiz Mohammad Yousaf NCBMS Consulting 2016–2017 Nadeem Yousuf Adil Deloitte Pakistan 2017–2018 Riaz A. Rehman Chamdia Ernst & Young Pakistan 2018–2019 Jafar Husain Professionals' Academy of Commerce 2019–2020 Khalilullah Sheikh Pakistan International Airlines2020–2022 Iftikhar Taj Crowe Global Hussain Chaudhury & Co.2022-2023Ashfaq Yousuf TolaTola Associates2023-2024Muhammad Ali Latif Muniff Ziauddin & Co., Chartered Accountants2024-2025Farrukh Rehman PricewaterhouseCoopers Pakistan
Course summary 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. +Course OutlineStageCodeExamsPRCPRC-1 Fundamentals of AccountingPRC-2Quantitative Analysis for Business PRC-3Business And Economic InsightsCAFCAF-1Group AFinancial Accounting and Reporting-ICAF-2Tax PracticesCAF-3Data, Systems and RisksCAF-4Business LawCAF-5Group BFinancial Accounting and Reporting-IICAF-6Managerial and Financial AnalysisCAF-7Company LawCAF-8Audit and AssuranceCFAPCFAP-1Advanced Accounting and Financial ReportingCFAP-2Advanced Corporate Laws and PracticesCFAP-3Strategy and Performance MeasurementCFAP-4Business Finance DecisionsCFAP-5Tax Planning and PracticesCFAP-6Audit, Assurance and Related ServicesMSAMSA-1Financial Reporting and Assurance ProfessionalMSA-2Management Professional Competence
International affiliations ICAP is a member of:
International Federation of Accountants (IFAC) International Accounting Standards Board (IASB) Confederation of Asian and Pacific Accountants (CAPA) South Asian Federation of Accountants (SAFA) IFRS Foundation BRI Accounting Forum Accounting and Auditing Organization for Islamic Financial Institutions (AAIOFI) Chartered Accountants Worldwide (CAW)
Publications and research ICAP publishes a range of professional and informational publications. Its regular publications include the monthly Newsletter, which provides updates on Institute activities and developments, and The Pakistan Accountant, a quarterly journal featuring articles on accounting, auditing, business, finance, and related topics.
Other notable publications include Artisans of Accountancy, a coffee table book on the history of the accountancy profession in Pakistan, and An Inspiring Journey of a CA Woman, which highlights the contributions of women in the profession.
Offices ICAP’s head office is located in Clifton, Karachi, with regional offices in Lahore, Islamabad, Multan, Faisalabad, Peshawar, and Quetta. It also maintains an overseas chapter to support members residing abroad. The Institute regularly organizes seminars, workshops, and conferences to engage with stakeholders and promote professional excellence.