KARACHI: Institute of Chartered Accountants of Pakistan (ICAP) has ordered all the Chartered Accounting firms and members to refrain from hiring trainees of other accounting bodies. The official order in this respect was issued on 4 July 2012.

As per the order, no accounting student pertaining to accounting body other than the ICAP would be allowed to obtain training from CA firms within Pakistan. Many commentators believe that this is the latest blow inflicted by ICAP to the students within Pakistan who are affiliated with Association of Chartered Certified Accountants (ACCA), Chartered Institute of Management Accountants and Institute of Chartered Accountants of England and Wales (ICAEW).

The notification issued by ICAP uses stringent remarks with respect to the hiring of foreign accounting body students. ICAP has clearly stated that any help or aid to such students would be constituted as a violation of Section 22 of Ordinance and hence would result in nullifying the license of the CA firm.

“The identity, qualification and regulatory status of the Institute are protected under the Ordinance, particulary, section 22 of the ordinance prohibits any person to encroach in the mandate of the institute.” “Engaging any person as student or trainee pursuing a qualification  or membership of an accounting body which uses a name the deceives or is likely to deceive the public, awards any certificate or bestow any designation which indicates attainment of any qualification possessed by a person by virtue of his being a member of the Institute or seeks to regulate the profession of Chartered Accountants, tantamounts to assisting or aiding the violation of Section 22 of Ordinance."

The harsh statement can be clearly witnessed by this quote issued by the ICAP whereby they consider foreign qualifications as an encroachments in the mandate of the institute.

Many commentators supporting the ACCA, CIMA and ICAEW believe that this is a discriminatory act carried out by the ICAP.

Though the people favoring ICAP have stated that this act has been carried out in order to efficiently regulate the accountancy profession of accountancy within Pakistan.

This step may have severe affect on many students who are currently registered within foreign accounting bodies and would have thought of obtaining training within CA firms of Pakistan in order to prosper their career. Training is a necessary element for all the accounting students irrespective of their accounting body hence many accounting students in Pakistan would get negatively affected as a result of this decision.

As many foreign accounting bodies do not have such restrictions, this step of the ICAP seems rather objectionable.