About Us
We are Fazal Mahmood & Company Chartered Accountants. A leading
advisory, tax and assurance firm, committed to building long-lasting relationships and helping you win now and count on tomorrow since 1984.
Our more than 40 years of experience and Prime Global affiliation that gives us access to around 90 countries worldwide enables us to make well calculated decisions and create
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Audit and Assurance
Audit and Assurance
Advisory
Advisory
Online Bookeeping
Online Bookeeping
Taxation
Taxation
ERP Solutions
ERP Solutions
SME’s Start Up Assistance
SME’s Start Up Assistance
We have consistently been appreciated for our excellence both domestically and internationally.
We continue to serve a wide berth of diverse clientele spanning mulitiple industries and continents.
From Textile, Steel and others, we have an abundance of industry experience under our belt.
We are experts whose skill has been sought by leading companies across the globe.
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Stay up to tune with everything that is happening in the world of finance. Our writers will also take you through our views on latest developments. Financial literacy is the number one priority.
Tax Reforms Urged to Avoid Burdening Citizens
LAHORE: Highlighting the immense economic challenges faced by citizens, including a 60% inflation spike over the past 2.5 years, Nazir Hussain, President of the Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI), emphasized the need to resolve the recent Rs 180 billion tax shortfall without imposing additional burdens on the public. Speaking at a think tank session on Friday, Hussain advocated for comprehensive taxation reforms targeting policy weaknesses and focusing on “abnormal profits” in protected sectors. Such measures, he said, would ensure equitable tax distribution while fostering sustainable economic growth. Brig Mansoor Saeed Sheikh (Retd), Senior Vice President PCJCCI, lauded the prime minister’s incentive package for its potential to boost economic growth by encouraging agricultural, industrial, and commercial activities through discounted electricity rates. Commercial consumers will see discounts of 34-47% on incremental usage, with base rates ranging from Rs 39.53 to Rs 48.78 per unit and incremental rates set at Rs 26.07 per unit. Zafar Iqbal, Vice President PCJCCI, welcomed the energy relief but suggested a broader reduction of Rs 12 per unit across all consumer categories—residential, commercial, industrial, and agricultural—applied to total consumption rather than incremental usage. Salahuddin Hanif, Secretary General PCJCCI, proposed finalizing the capacity payment agreement on a take-and-pay basis by December 31, 2024. He stated that this strategy would stimulate economic growth and encourage additional consumption across sectors at reduced costs. The session underscored the importance of balanced tax policies and affordable energy to ensure economic stability and relieve financial pressures on the nation’s citizens.
IMF Pushes for Budgetary Reforms in Pakistan
ISLAMABAD: The International Monetary Fund (IMF) has recommended that Pakistan initiate legal reforms to curtail the federal government’s discretionary powers over supplementary grants. The proposed changes aim to enhance fiscal transparency and align Pakistan’s budget practices with global standards, while still allowing some flexibility in budget execution. In its “Technical Assistance Report – Improving Budget Practices,” the IMF highlighted that Pakistan’s current practice lacks adequate parliamentary oversight, making it an exception compared to international norms. The report recommended that significant amendments to budgeted expenditures should require prior approval from the National Assembly. The IMF also proposed a special audit, conducted by the auditor general, to evaluate the mechanism and effectiveness of supplementary grants over the past decade. The findings would help address inefficiencies and improve fiscal accountability. The Fund noted that frequent reliance on discretionary budget adjustments without legislative input could result in poor fiscal forecasts, weak public policy costing, and ineffective budget control. It urged the government to redesign budget execution processes and align commitment controls with best practices. To address these issues, the IMF referenced Pakistan’s Supreme Court judgment advocating for ex-ante parliamentary approval of supplementary grants. It suggested amending laws such as the Public Finance Management Act (PFMA) and General Financial Rules (GFR) to institutionalize this principle. A 2019 attempt to amend Article 84 of the Constitution to mandate prior National Assembly approval for supplementary grants failed due to lack of support. However, the IMF emphasized that other mechanisms could still ensure compliance with the Supreme Court’s ruling. These proposed reforms aim to strengthen fiscal discipline, promote transparency, and ensure greater accountability in Pakistan’s budgetary process.
IHC Restrains Government from Taxing Bank Income
ISLAMABAD: The Islamabad High Court (IHC) has issued an interim order restraining the government from collecting taxes on the income of banks. The court also served notices to the Secretary of Finance and other relevant respondents, directing them to submit a report and detailed responses within two weeks. The court clarified that until the next hearing, no coercive measures would be taken against the petitioners based on any tax calculations made under Rule 6C (6A) of the 7th Schedule of the Income Tax Ordinance, 2001. Justice Babar Sattar, presiding over a single-judge bench, heard the petitions filed by multiple banks, represented by Advocate Salman Akram Raja. The court also issued a notice to the Attorney General for Pakistan (AGP). The petitioners have challenged Rule 6C (6A) of the 7th Schedule of the Income Tax Ordinance, arguing that it oversteps constitutional boundaries. The petitioners’ counsel stated that the Federal Board of Revenue (FBR) is taxing income earned by banks from investments in federal government securities using a formula based on gross advances to deposit ratio. The counsel argued that this regulation encroaches on the banking sector’s operational domain, exceeding the scope of a money bill and violating Article 73 of the Constitution. Additionally, the counsel highlighted that the tax imposed is retrospective in nature, targeting investments that did not mature within the financial year, which he contended is unlawful. The court’s decision temporarily shields banks from tax enforcement while the matter awaits further legal deliberation.
IMF Suggests Macro-Fiscal Reforms for Pakistan’s Finance Division
The International Monetary Fund (IMF) has urged Pakistan to strengthen the Finance Division’s capacity to lead and coordinate macro-fiscal forecasts, synchronize them with the budget cycle, and introduce a strategic phase to the budgeting process. In its “Technical Assistance Report on Improving Budget Practices,” the IMF highlighted the fragmented structure of the Finance Division as a key obstacle to strategic budgeting. It recommended introducing a strategic budget phase aligned with the Public Financial Management Act of 2019, revising the Budget Call Circular to include binding ceilings, and addressing the dual budgeting system. The Fund also advised reorganizing the Finance Division to focus on budgeting and management functions, creating a Public Financial Management (PFM) Digitalization Master Plan, and forming a high-level steering committee for implementation. Pakistan’s current budgeting process lacks updated fiscal projections at the start of the budget cycle in January, relying instead on outdated data from the previous Budget Strategy Paper (BSP). The IMF suggested two approaches: moving the BSP release to January or incorporating preliminary macro-fiscal data into the Budget Call Circular. The IMF noted that Pakistan faces significant fiscal challenges, with public debt rising by 16 percentage points of GDP between FY2017 and FY2023, interest payments consuming 60% of tax revenue, and persistent discrepancies between fiscal forecasts and actual outcomes. To meet its medium-term goal of reducing debt-to-GDP from 74% to below 60%, Pakistan must address a primary deficit of 1.3% of GDP in FY2023 and achieve a surplus of 0.4% in FY2024. This requires strict expenditure restraint, additional revenue generation, and prioritization of social and development spending. Additionally, the IMF called for improved coordination between the Economic Adviser’s Wing and the Budget Wing, enhanced scrutiny of budget proposals, and addressing gaps in specialized staff, tax policy, and debt management within the Finance Division.
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For those on the hunt for a step up, we have a world class clientele just waiting for your input
Looking for an exciting, fast paced work environment? Look no further than FMC
For those on the hunt for a step up, we have a world class clientele just waiting for your input
Looking for an exciting, fast paced work environment? Look no further than FMC
Here’s what our clients have to say about us
(FMC) has been engaged since the year 2018 for our Pakistani subsidiary Softech Corporation (Pvt) Limited. They have been entrusted to carry on full scope accounting work including ensuring legal and tax compliances for our subsidiary. We are very happy with their services since the start which has always been timely and of quality. We also would like to acknowledge the quality of their advisory services as well. We wish them great success
We are pleased to highly recommend Fazal Mahmood and Company Chartered Accountants (FMC) for their outstanding corporate and tax consultancy, as well as their exceptional internal audit services. As a valued partner of Abbasi and Company (Private) Limited (Brokerage House), FMC has consistently demonstrated professionalism, expertise, and dedication in delivering comprehensive financial services. Their strategic advice on tax planning and compliance has significantly optimized our tax liabilities, while their meticulous internal audit services have enhanced our internal controls and operational efficiency.
Joblogic Pakistan (Private) Limited is pleased to commend Fazal Mahmood and Company Chartered Accountants (FMC) for their exceptional services in managing our finance, accounts, corporate, and tax functions. FMC has been an invaluable partner, providing comprehensive outsourcing solutions that have significantly enhanced our operational efficiency and financial accuracy.
Here’s what our clients have to say about us
I have had a great experience with Fazal Mahmood and Company. Not only were they able to help us optimize our tax burden but they also identified areas of strategic growth. They are true professionals and I am a life-long customer of theirs.
In all my years in business, I do not think I have come across a more competent and professional team than Fazal Mahmood Company. They were excellent communicators, maintained a high quality output and followed each deadline.
I was referred to FMC through a friend and Ihave been blown away by the level of meticulousness they have in everything they do. They helped my company in crunch time and I will be recommending them to other business owners.
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