Mr. Muhammad Yunis Khan
Former Auditor-General of Pakistan
20-07-2002 to 19-07-2007
Education:
A distinguished figure in Pakistan's audit community, Mr. Muhammad Yunis Khan started his schooling at the country's prestigious public school, Lawrence College Ghora Gali. He later graduated from Forman Christian College, Lahore before obtaining his law degree from Punjab University Law College, Lahore. His commitment to professional development led him to attend specialised courses, including those on trade promotion/international trade at JICA, Tokyo, Japan in 1979 and a course on Public Sector Enterprises Management, Operations and Privatisation at the International Law Institute, Washington, D.C. in 1989. In 1990, he received training in Development and Privatisation Policy from Washington, D.C., and in 1992, he completed an International Finance Course from Oxford University in the United Kingdom, further expanding his expertise.
Professional Experience and Achievements:
In 1966, Mr. Muhammad Yunis Khan joined the Pakistan Audit and Accounts Service, marking the beginning of his career in the civil service. Initially, he served as Comptroller, Northern Areas, Accountant General, Punjab, Deputy Director (Foreign & UN Audit), Director (WAPDA Audit), and Director (Audit & Accounts), CDA.
Mr. Khan served in key positions within Pakistan and abroad. In 1978, he joined the Ministry of Commerce as Deputy Secretary (Import/Export). In this capacity, he negotiated many bilateral and multilateral agreements. In addition to serving as Commercial Counsellor at Pakistan's Consulate in Bonn, Germany, he was also External Auditor at UNICEF headquarters in New York.
In December 1988, he was inducted in the Secretariat Group as Joint Secretary. In this capacity, he served in the Establishment Division and the Prime Minister's Secretariat. From 1989 to 1996, he was Secretary (Finance) and Secretary (Health and Information) in the Government of the former NWF (now Khyber Pakhtunkhwa). In 1996, he returned to the Federal Government to join the Export Promotion Bureau (now Trade Development Authority of Pakistan) as its Vice Chairman. Later, he served the Finance Division as Additional Secretary Finance. For a brief stint, he also remained Director General, NIPA, Peshawar in 1999.
After his promotion to BS 22 in 2000, he served the Federal Government as Finance Secretary for two years. In this role, Mr. Khan was an important member of a team that launched and sustained a comprehensive economic reforms programme aiming to restore the financial health of the country. He retired from that position and was appointed as the Auditor-General of Pakistan in July 2002.
He did not merely occupy an office; he took upon himself the mantle of transformative change. An important element of this change was ensuring smooth implementation of the public financial management reform programme called “Project to Improve Financial Reporting and Auditing (PIFRA)”. Launched with the support of the World Bank, PIFRA created a nationwide Integrated Financial Management Information System. This ERP system created a single, real-time financial reporting and monitoring network by connecting all districts in all four provinces with the federal government through extensive central networking and smooth online communication capabilities.
In addition to modernising procedures, Mr. Khan used PIFRA to bring Pakistan's financial management techniques in line with global standards. In order to expose Pakistan's SAI to world-class standards of financial scrutiny, this initiative placed greater emphasis on switching from a traditional, transaction-based auditing model to a system-based approach that made use of a client-server environment. By introducing advanced technology, rearranging physical spaces, and providing upgraded facilities, Mr. Khan created an ecosystem that made audit activities more streamlined, transparent, and effectively managed across all levels of government.
Mr. Khan’s tenure also witnessed the implementation of NAM (New Accounting Model), which further solidified his legacy of reform and modernization. In a historic change that promoted greater trust and clarity in financial disclosures, NAM's introduction reshaped the federal and provincial governments' budgeting and reporting procedures, harmonising them with international standards. The Financial Statements for the first time reflected a unified approach that satisfied both domestic demands and international standards, enhancing Pakistan's reputation across the globe. A critical element of this model was a newly developed and internationally compliant chart of accounts, which was implemented seamlessly in the Federal Government’s 2004-2005 budget preparation. This shift marked a significant milestone, with NAM providing a robust structure for budget formulation and Financial Reporting, enhancing transparency and accountability across the government.
The Financial Audit Manual (FAM) was also commissioned in June 2006 by Mr. Khan for use in Field Audit Offices (FAOs) for conducting Certification and Compliance with Authority audits. It ensured consistency and reliability, allowing the FAOs to conduct their work with a higher degree of rigour and precision that had far-reaching implications for Pakistan’s financial credibility at both national and international levels.
In 2002, he successfully persuaded the Chief Executive/President of Pakistan to restore the service title of Pakistan Audit & Accounts Service for the Accounts Group. On his personal intervention, the Chief Executive/President of Pakistan delegated full powers to the Auditor-General of Pakistan to grant honoraria to government servants working in OAGP as well as officers working in PIFRA. Furthermore, he also envisioned the creation of District Audit setup.
A hallmark of his tenure was his passion for knowledge-sharing and building a multidisciplinary workforce capable of tackling the complexities of value-for-money (VFM) audits. His tenure was not just about systems and processes; it was about people. A true leader at heart, Mr. Khan prioritised the professional development of his team. He instituted continuous training programs (local as well as foreign), fostering a culture of excellence and integrity within the Pakistan Audit and Accounts Service. He redefined Performance Audits to blend seamlessly with Regularity Audits, ensuring that the financial accountability of government departments is scrutinised through both fiscal rigour and a lens of efficiency, economy, and effectiveness.
In his vision, SAI Pakistan was not simply an Audit institution but a custodian of ethical governance and a steward of moral leadership. He fostered a culture where auditors were led by a sense of duty and trust by upholding INTOSAI's Code of Ethics, which was a call to a higher standard of impartiality and integrity. This code of ethics allowed SAI Pakistan's public sector auditors to perform their duties impartially, fostering public trust and establishing a reputation for objectivity that went beyond Pakistan's boundaries.
His vision extended to collaborations on developing guidelines and manuals on Environmental Auditing and Green Accounting, with Pakistan spearheading change in these domains for Central Asia. His consistent endeavours and interaction at the international arena helped SAI Pakistan secure the position of External Auditor of UNIDO and OPCW. SAI Pakistan audited the OPCW accounts for the years 2003, 2004 and 2005 and issued audit reports, which were well received at different forums of the OPCW.
Mr. Khan served as a member of the Governing Board of ASOSAI, permanent Secretary General of the ECOSAI, and a Director of the ICGFM. SAI Pakistan was represented on the Standing Committee on IT Audit and the Working Group on Environmental Audit of INTOSAI, and it actively participated in several of the organisation's committees and working groups. It was associated with different research projects undertaken by the ASOSAI and was a member of the Taskforce of ASOSAI that developed Guidelines for Prevention of Fraud and Corruption. It was also a member of the research team for the 7th ASOSAI Research Project on “Audit Quality Management System.”
Furthermore, his leadership within ASOSAI, ECOSAI, and INTOSAI demonstrated Mr. Khan’s determination to elevate Pakistan’s standing on the world stage and made sure that SAI Pakistan was not just a participant but an influential voice in international audit discussions. These achievements underscored Mr. Khan’s philosophy of a globally engaged Pakistan. SAI Pakistan remained actively involved in the activities of different multilateral organisations. During the 9th ASOSAI Assembly in October 2003 held in Manila, SAI Pakistan was re-elected to the ASOSAI Governing Board, securing the highest number of votes—29 out of 33—demonstrating the high esteem it enjoyed amongst the member countries.
Mr. Khan further elevated Pakistan’s standing in January 2004 when he hosted the ECOSAI Congress in Islamabad, which was attended by delegates from member countries. This event featured key meetings, such as the 4th ECOSAI Training Committee and the 9th Governing Board meetings. Mr. Khan's initiatives fostered international collaboration and established Pakistan's SAI as a regional leader in promoting transparency and accountability.
Mr. Khan introduced the Report Highlights of the Audit of the AGP 2004-05, which featured analyses of several federal Government Divisions, departments, and Value for Money reports. His earnest desire was to integrate audit and the country’s core financial management functions to achieve improved, transparent, and accountable governance, and this publication marked the initial step towards that goal.
Mr. Khan, through his meticulous analysis, identified critical gaps in the proposal to transfer the responsibility for maintaining provincial and district accounts from the federal to provincial governments. Highlighting the complexities of constitutional provisions, he argued that such a transition could violate Article 170 of the Constitution, which grants the federal government authority over provincial accounts and ensures consistent oversight and centralised financial integrity. His analysis indicated that a unified financial system constructed under the PIFRA framework encompassing all government levels and tiers could potentially become fragmented with this transition. Consequently, the goal of streamlined and integrated financial data and decision-making could be compromised.
His assessment demonstrated both a profound understanding of constitutional law and a keen awareness of practical issues, such as the potential burden on provincial resources and expertise. He foresaw significant capacity challenges, with the provinces lacking the trained personnel needed for such specialised accounting functions. He also cautioned about the repercussions for national fiscal policy if uniformity in financial data were compromised. In a prudent recommendation, he advocated for a delay in implementing this transfer, urging a reassessment to uphold constitutional standards and operational efficiency. His strategy demonstrated his depth of analysis and commitment to defending the country’s financial governance framework from a potentially disruptive policy shift.
Following his retirement, Mr. Khan spent his time playing golf and serving the society through various noble initiatives, including voluntary work with Pakistan Red Crescent Society. After a brief illness, Mr. Khan passed away in 2023.
The legacy of ex-Auditor General Mr. Muhammad Yunis Khan is a story of resilience, foresight, and transformative change. His tenure cemented Pakistan’s place in the international Audit community, with SAI Pakistan widely respected for its standards, expertise, and integrity.