TIMES REPORT
PESHAWAR: The Khyber Pakhtunkhwa government has finalized the Local Council Board Accounting and Financial Reporting Rules, 2026, marking a major reform in municipal financial management.
The rules, prepared by the Reforms and Monitoring Unit of the Local Government, Elections & Rural Development Department, are currently under legal vetting and will be submitted to the Provincial Cabinet in the first week of September.
The framework introduces IPSAS-aligned accrual accounting, replacing outdated manual cash-based systems. It will initially apply to 134 Tehsil Municipal Administrations (TMAs), the Local Governance School and the Local Council Board.
Key reforms include standardized balance sheets, daily bank reconciliations, stronger internal controls, mandatory internal audits and online publication of monthly and annual financial statements and budget execution reports.
Following Cabinet approval, the system will gradually be extended to other local government formations, including Village and Neighbourhood Councils, Urban Area Development Authorities, PDA and other relevant bodies.
A senior official said the reforms would strengthen financial integrity, prevent leakages and ensure that public funds allocated to local governments are properly accounted for and used for civic development.
The rules will also provide the foundation for the department’s wider digital transformation programme, including the already launched Computerized Financial Management Information System (CFMIS).
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