Ultimate Guide to Chartered Accountancy CA in Pakistan

Welcome to our “Ultimate Guide to Become a Chartered Accountant CA in Pakistan”. This comprehensive guide is designed to provide you with all the detailed information you need to embark on your journey towards becoming a CA. We will delve into the various stages, entry options, eligibility criteria, and the costs associated with this prestigious qualification. Drawing comparisons and using bullet points for clarity, this guide will serve as your roadmap, empowering you to make informed decisions about your future career path. So, if you’re ready to step into the world of finance and accounting with a CA designation, let’s get started!

What is CA Degree? CA Stands for?

Choosing a career path is a significant decision that shapes your future. One promising option is Chartered Accountancy (CA), a globally recognized qualification offering diverse opportunities in the financial world. CA stands for Chartered Accountant, awarded to professionals who meet rigorous educational and experience requirements. With CA, you gain knowledge and skills in auditing, taxation, and financial management.

In Pakistan, the CA qualification is equivalent to a Master’s degree, providing the same academic standing.

What is ICAP?

ICAP is the authoritative body in Pakistan that awards the CA qualification. With a comprehensive program and commitment to excellence, ICAP equips you with the skills and knowledge to excel in finance and accountancy.

ICAP Official Website https://www.icap.org.pk

Admission Eligibility and Entry Criteria

It’s crucial to understand if you meet the eligibility criteria before you start. Here, we will compare different qualifications and provide detailed information to guide you through this process.

Full-Time Scheme vs Trainee Scheme

The Institute of Chartered Accountants of Pakistan (ICAP) offers two routes of entry into the CA program:

Full-Time Scheme after Intermediate

• You must have an intermediate level of education with at least a minimum of 50% marks, which equates to 12 years of education. (FA, FSc, ICS, I.Com)
• Alternatively, you can enter the program if you have completed A-levels with at least three passes in subjects or a minimum Grade E.

Trainee Scheme

• You are eligible if you hold a Bachelor’s degree 14 years education or masters 16 years of education in any discipline with a minimum of 45% marks.
• If you have completed your CIMA, ACCA, or ICMAP degree, you are also eligible to exempt the PRC and CAF subjects or papers.

Students who meet the criteria for the Trainee Scheme will be exempt from qualifying for the entry test, whereas those under the Full-Time Scheme must appear in the CA program’s entry test (QAT).

Quality Assessment Test (QAT)

The QAT serves as an entry test for students pursuing the CA program. Here’s what you need to know:

• The QAT is a computer-based test that consists of three parts: Mathematics, English, and Analytical Reasoning.
• Candidates can attempt QAT thrice.
• The entry test is conducted by a third party authorized by ICAP.

This post is a part of our series “Best degrees after 12th commerce I.Com in Pakistan”. You can read on the below link.

Best degrees after 12th commerce I.Com in Pakistan

CA Levels and Papers/ CA Subjects List

The Chartered Accountancy Program in Pakistan consists of four levels, 21 papers and a mandatory training program of 3.5 years.

Stage 1

It is also called entry level. It is necessary to build a basic understanding of the field. Most of the students complete this stage within 1.5 – 2 years.

Pre-requisite Competencies (PRC) or CA Inter

This level focuses on understanding and awareness of basic concepts. The students are required to pass 5 subjects or papers with minimum 50% passing marks to start the next step. The following subjects are covered at this stage.

• Business Writing & Comprehension Skills
• Quantitative Methods
• Principles of Economics
• Introduction to Accounting
• Introduction to Business

Certificate in Accounting and Finance (CAF)

This level requires a good understanding and detailed evaluation of the subject matter and related concepts.

Group A

• CAF-1 Financial Accounting and Reporting-I
• CAF-2 Tax Practices
• CAF-3 Cost and Management Accounting
• CAF-4 Business Law
  

Group B

• CAF-5 Financial Accounting and Reporting-II
• CAF-6 Managerial and Financial Analysis
• CAF-7 Company Law
• CAF-8 Audit and Assurance

Stage 2 – Articleship or Training

After the completion of the PRC and CAF, students must join an authorized training organization (audit firm) for a 3.5-year period to gain practical experience. 

This is also called articleship or training and the students are paid a stipend starting from Rs. 19300 per month and it increases every year according to the papers you have passed. The maximum stipend can be up to 72000 per month. 

After one and a half years of training, students are required to take their CFAP exams.

Certified Finance and Accounting Professional (CFAP)

This level needs an in-depth understanding and critical examination of all concepts and available information. There are a total of 6 subjects or papers in this level.

• CFAP-1 Advanced Accounting and Financial Reporting
• CFAP-2 Advanced Corporate Laws and Practices
• CFAP-3 Strategy and Performance Measurement
• CFAP-4 Business Finance Decisions
• CFAP-5 Tax Planning and Practices
• CFAP-6 Audit, Assurance and Related Services

Multi-Subject Assessment (MSA)

The final stage of CA. It contains 2 subjects or papers. 

• MSA-1 Financial Reporting and Assurance Professional Competence
• MSA-2 Management Professional Competence

Read this guide to know about the scope of CA in Pakistan.

Scope Of Chartered Accountancy In Pakistan

ICAP Approved Colleges

ICAP is associated with the best training organizations to provide unparalleled learning opportunities to future finance leaders. This partnership ensures that students receive practical training that complements their theoretical knowledge. The table below shows all ICAP approved institutes in all cities and provinces of Pakistan along with their ranking. (ICAP issue ranking of institute after strict scrutiny of multiple factors)

ICAP Ranking System

1. Fellow RAETs: These are the top-performing institutes who have achieved 70% and above points. They have demonstrated exceptional commitment to delivering quality education and consistently meet the high standards set by the Institute.
2. Affiliate RAETs: Falling within the range of 50% to 69% points, Affiliate RAETs have shown considerable dedication to their role. While they may not have reached the same level of achievement as Fellow RAETs.
3. Registered RAETs: These institutes have scored below 50% points. While they are part of the recognized institutes, their performance indicates room for improvement to meet the Institute’s expectations better.

CA Colleges in Karachi

There are 9 CA institutes approved by ICAP in Karachi.

CA Colleges in Lahore

There are 9 ICAP approved CA colleges in Lahore. Below is the detail along with ranking.

CA Colleges in Islamabad

Total 6 ICAP approved colleges in Islamabad.

CA Colleges in Peshawar, Faisalabad, Multan, Gujranwala and other Cities

ICAP Fees for Chartered Accountancy

Choosing to pursue the Chartered Accountancy program from the Institute of Chartered Accountants Pakistan (ICAP) is a significant decision, both professionally and financially. To help you make an informed decision, we have compiled a comprehensive breakdown of the ICAP fees structure for this globally recognized qualification.

Affiliation Fees

Becoming affiliated with ICAP involves certain fees:

• Affiliation Certification Fee: 2,600 PKR
• Affiliation Annual Fee: 6,300 PKR

These are necessary costs to officially become part of the ICAP community.

Registration and Annual Subscription Fee

To register for the CA program, there is a one-time registration fee:

• Registration Fee: 17,500 PKR

In addition, students must pay an annual subscription fee:

• Annual Subscription Fee: 2,000 PKR

This yearly fee is for maintaining your status as a student in the program.

Examination Fees

The examination fees vary based on the number of papers a student is taking in a given examination cycle:

• 1 Paper: 5,600 PKR
• 2 Papers: 9,800 PKR
• 3 Papers: 14,000 PKR
• 4 Papers: 18,200 PKR

Best Books for Chartered Accountancy (CA) Preparation

Preparing for the Chartered Accountancy (CA) examinations is a significant undertaking. It requires not only dedication and hard work, but also the right resources. Based on my research, here are some of the best books that can help you prepare for the CA examinations in Pakistan:

CA Exemptions After ACCA

If you are an ACCA (Association of Chartered Certified Accountants) qualified professional considering furthering your career by pursuing Chartered Accountancy (CA), you’re in luck. The Institute of Chartered Accountants Pakistan (ICAP) offers numerous exemptions to ACCA qualified professionals. This means you can fast-track your CA qualification by skipping certain examinations based on the knowledge and skills you’ve already acquired during your ACCA journey.

What Exemptions Are Available?

ACCA qualified professionals are exempt from the following ICAP examinations:

• Certificate in Accounting and Finance (CAF): All nine papers.
• Certified Finance and Accounting Professional (CFAP): Two out of six papers (CFAP 1, Advanced Accounting and Financial Reporting and CFAP 2, Corporate Laws).

This leaves you with four papers to complete in the CFAP level and two papers in the Multi-Disciplinary Case Study (MDCS) level.

CA Exemptions After BBA

If you have completed a Bachelor of Business Administration (BBA) and are considering pursuing Chartered Accountancy (CA), you may be eligible for certain exemptions. These exemptions can enable you to fast-track your CA qualification by skipping some examinations based on the knowledge and skills you’ve already acquired during your BBA program.

What Exemptions Are Available?

Based on my search results, students who have completed their BBA might be able to get exemptions from some CA courses if they decide to pursue CA after their BBA. However, it’s important to note that the exact number of exemptions depends on the specific subjects you studied during your BBA and the grades you achieved.

As per the Institute of Chartered Accountants Pakistan (ICAP), exemptions from ‘CAF-8 Audit and Assurance’ shall only be granted to persons who have passed AAA – Advanced Audit and Assurance.

How to Apply for Exemptions?

To apply for exemptions, you need to fill out the ICAP’s exemption form and submit it along with required documents including your BBA transcript and certificate.

Scope of Chartered Accountancy in Pakistan

Chartered Accountancy (CA) is a highly esteemed professional qualification recognized globally for its rigorous training and extensive curriculum. In Pakistan, the demand for Chartered Accountants is ever-increasing, with opportunities spanning across various sectors.

Job Roles and Industries

As a Chartered Accountant, you’re not confined to a specific role or industry. Your expertise will be sought after in a wide array of sectors:

• Audit Firms: Audit and assurance are core areas where CAs excel. They work as internal or external auditors ensuring financial transparency and compliance.
• Banking and Finance: CAs play crucial roles in financial planning, risk management, and investment strategies.
• Taxation: Expert knowledge of tax laws makes CAs ideal for roles in tax planning and compliance.
• General Management: Strategic planning, decision-making, and managing resources are areas where CAs contribute significantly.
• Consulting: CAs provide advisory services to businesses, helping them optimize operations, reduce costs, and improve profitability.

Expected Salaries

The earning potential of a CA in Pakistan is substantial. While the exact remuneration depends on factors such as experience, skills, and the employing organization, a CA can expect a competitive salary package. As per ICAP, the average salary of a CA in Pakistan is higher than other finance professionals.

Will CA Be Replaced by AI?

While Artificial Intelligence (AI) has made significant strides in automating routine tasks, the role of a CA goes beyond mere number crunching. CAs bring strategic vision, critical thinking, and professional judgment to the table—traits that are currently irreplaceable by AI. Though AI may change the way CAs work, it’s unlikely to replace them entirely.

International Job Market

The CA qualification is globally recognized, offering opportunities to work in international markets. Whether it’s financial hubs like New York and London or emerging markets in Asia and Africa, CAs can find promising careers globally.

Entrepreneurship Opportunities

Chartered Accountancy equips professionals with a robust understanding of business operations, making them well suited for entrepreneurship. Many CAs have successfully established their own consulting firms, providing services such as tax consulting, financial advisory, and management consulting.

List of Universities for Exemption of all PRC and CAF Papers

• Lahore University of Management Sciences (LUMS), Lahore
• Institute of Business Administration (IBA), Karachi

List of Universities for Exemption of PRC and 4 CAF Papers

(Financial Accounting and Reporting-I, Business Law, Managerial and Financial Analysis, Company Law)

• Institute of Business Management (IoBM), Karachi
• National University of Sciences and Technology (NUST), Islamabad
• University of Central Punjab, Lahore
• University of Lahore, Lahore
• University of Management and Technology, Lahore
• Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST)