Government Accounting in Pakistan: transition from a Legacy system to the New Accounting Model

ABSTRACT This research aims to describe and assess the historical development of government accounting in Pakistan; and to analyse the distinctive elements of each stage of development that contributed to the dynamics of change. Prior studies have overlooked public sector accounting as researchers have focused more on Pakistan’s private sector. We find, in the first instance, a transition in the government accounting of the country from a Legacy system to the New Accounting Model. A thematic analysis of the archival data further reveals that the system has passed through the stages of Dependency, Stepping-stone, and Modernisation with a forward look to Standardisation. Beyond accounting history, our results are deemed to be useful to accounting education, policy, and practice.