Chart of Accounts


  • In December 2000, the New Accounting Model (NAM), which includes the New Chart of Accounts (CoA) was prescribed by the Auditor General of Pakistan, with the approval of the President of Pakistan, under Article 170 of the Constitution of the Islamic Republic of Pakistan. This had become necessary because the previous Chart of Classification (CoC) notified in 1981 had become inadequate.
  • The new CoA provides ready information about entities, programs, projects and geographical distribution of resources etc. With the introduction of a uniform new CoA, it is expected that timely, accurate, comprehensive and reliable information will be available to the decision makers and for enforcing effective accountability and better financial governance. Increased financial reporting requirements of the NAM will also be met through timely and reliable information for better:
    • Budgetary Management
    • Financial Control
    • Cash Forecasting and Trend Analysis
    • Fiscal Administration and Debt Management
  • The new CoA is expected to also provide a uniform basis for classification of Receipts, Expenditure, Assets, Liabilities and Equity (Residual Value) through elements such as:
    • Entity
    • Function
    • Object
    • Fund
    • Project
  • By providing accurate and timely information to the finance managers at the Federal, Provincial and District levels the CoA will facilitate and accelerate the complete computerization of the entire accounting system.
  • The undersigned will greatly appreciate if any error or omission that may come to notice, or suggestions for further improvement are sent to Deputy Auditor General (amp;)
  • Chart of Accounts





All financial activities starting with planning, preparation and execution of budget, accounting of all resultant transactions, evaluation and audit of accounts and ultimately financial reporting to serve as the basis for future planning and budgeting. The financial management system is embodiment of macro economic management which effects all internal and external stakeholders. In turn the macro economic indicators such as rate of inflation, changes in current and capital account, rate of growth, GNP etc. are all based on this financial management system.

Authorities Responsible:

Sponsoring Agency: World Bank, Government of Pakistan.
Implementing Agency:

Pakistan Audit Department (Comprising AGP & CGA),  Planning Division, Ministry of Finance.

Credit:     2921-PAK

Component I:

Government Accounting and Financial Reporting:

Development of accounting standards, reporting systems and financial procedures conforming to international accepted principles and computer based financial system based on complacent to internationally recognized standards.

System would enable the uniform application of prescribed controls for these transactions and support information retrieval needs for government finance managers at the centre and in the provinces.

a. Core Accounting and Reporting System:

To provide integrated government-wide accounting, encompassing the functional requirements for budget preparation and budget execution, covering appropriation, commitment, funds allocation and payment processes.

System would be comprehensive in terms of coverage and would provide acredible source of reliable and timely data.

Core Accounting System would be fully automated, interfacing with external data sources, i.e. SBP/NBP on periodic basis.

Would enable expenditures and revenues to be recorded at a detailed level and to relate these to specific programs and projects.

System Usage by:

CGA (including its AG and DAOs) to perform the basic accounting functions.

The Federal Ministry of Finance and Provincial Finance Departments to perform the process associated with budget compilation, monitoring and control and implement cash limits as may be required.

The Federal Planning Division and Provincial Planning Departments to obtain the status of actual expenditures on ongoing programs and projects.

b. Payroll and Pension System

Need for an automated payroll and pension system was evident in view of the increasing volume of transactions. 

System to perform the full range of the payroll functions and the expenditures processed would automatically update the core accounting and reporting system.

GP Fund:

Automated GP fund ledgers, balance sheets, interest calculations, adjustments of loans and advances etc…

Cash Flow Forecasting and Financial Analysis System:

To establish a system for forecasting likely flows of payments and receipts, and the consequent impact on cash balances and issue of debt instruments with the help of cash flow and financial analysis system.

This would provide a powerful facility for retrieving current and historical data from the accounting system…allowing end-users to manipulate the data for forecasting and analysis purposes.