Alzheimer’s disease is increasingly posing a significant challenge in Pakistan due to the rising aging population. Existing assessment methods lack the ability to offer a functional diagnosis of Alzheimer’s disease that considers the specific context of Pakistan. This study aimed to create self-reported and informant-oriented functional assessment tools, serving as cost-effective instruments to effectively evaluate and distinguish this condition from typical aging, particularly in the absence of neurological testing or during the early stages of symptoms. The research included both male and female individuals diagnosed clinically with Alzheimer’s disease, aged 65 years and above, selected through purposive sampling. Exploratory Factor Analysis and Confirmatory Factor Analysis was conducted on individuals with Alzheimer’s (n = 228) and their respective informants (n = 228) alongside the establishment of psychometric properties. The outcomes revealed the underlying factorial structure of the Functional Assessment Scale for Alzheimer’s disease and its Informant version. This study introduced two locally developed assessment tools that can aid in distinguishing between normal aging and Alzheimer’s disease, while also assessing the severity of symptoms as reflected in daily life activities especially religious practices underpinning the cultural nuances of Pakistan. The study could aid in the development of culturally relevant neurorehabilitation intervention models.