You may have been told by your bank, lawyer, or accountant that you need an "IVS valuation report" — but what does that actually mean? This guide explains what IVS standards are, why they matter in Pakistan, and exactly when a certified IVS report is required versus when a simpler indicative estimate will do.

"An IVS-compliant report is the global standard for formal asset valuation — it's what separates a credible, defensible value from an opinion."

What Are International Valuation Standards (IVS)?

The International Valuation Standards (IVS) are a globally recognised framework for conducting and reporting asset valuations, published by the International Valuation Standards Council (IVSC). They define:

  • How valuations must be scoped and commissioned
  • What methodologies are appropriate for different asset types
  • What must be disclosed in a valuation report
  • How to handle uncertainty, limitations, and conflicts of interest

The two standards most relevant in Pakistan are IVS 105 (Valuation Approaches and Methods) and IVS 300 (Plant and Equipment — also applied to vehicles). For property, IVS standards mandate the use of the Sales Comparison Approach, Income Approach, or Cost Approach, each disclosed clearly in the report.

In Pakistan, the Pakistan Engineering Council (PEC) and the Pakistan Banks' Association (PBA) both recognise IVS as the standard for collateral and asset valuations. Any valuation submitted to a bank must be IVS-compliant to be accepted.

Who Can Issue an IVS-Compliant Report?

In Pakistan, IVS-compliant valuation reports must be issued by a PEC-registered valuator. The Pakistan Engineering Council maintains a registry of approved valuators who meet professional qualification and experience requirements.

Not all valuators on PEC's registry are equal — banks and courts give greater weight to reports from established firms with a track record. NPM (NPM), the company behind Tasdeeq, is a PEC-registered valuation firm with over a decade of experience issuing IVS-compliant reports for banks, courts, and corporate clients across Pakistan.

What Does an IVS Report Contain?

A complete IVS-compliant valuation report includes the following sections:

  • Identification of the asset — Precise description, location, legal status, and ownership details
  • Purpose and basis of value — Market value, forced sale value, or other basis as required
  • Valuation date — The specific date to which the value relates (important for legal and financial purposes)
  • Inspection details — Date, conditions observed, and photographs
  • Methodology — Which approach was used (sales comparison, cost, income) and why
  • Market analysis — Comparable transactions and current market conditions
  • Assumptions and limitations — Any material assumptions that affect the value, and scope limitations
  • Final value conclusion — The assessed market value, and forced sale value if required
  • Valuator declaration and signature — PEC registration number and professional sign-off

IVS Report vs. AI Indicative Valuation: A Clear Comparison

AI INDICATIVE VALUATION
What it's good for
  • Understanding market value quickly
  • Pricing decisions before selling
  • Negotiation preparation
  • Insurance renewal estimates
  • Financial planning and budgeting
IVS CERTIFIED REPORT
What it's required for
  • Bank loans and mortgages
  • Legal proceedings and courts
  • Estate and inheritance settlement
  • Corporate mergers and acquisitions
  • Regulatory filings and audits

When Is an IVS Report Legally Required?

Bank Finance

Under SBP Prudential Regulations, all collateral offered against secured lending must be independently valued by an approved valuator. This applies to car loans, home loans, business finance, and overdraft facilities. The bank's credit committee will not process the application without a compliant report.

Legal and Court Proceedings

Pakistani courts require IVS-compliant valuations in property disputes, divorce and inheritance settlements, compulsory acquisition proceedings, and any matter where asset value is in contention. An informal or AI-generated estimate will not be admitted as evidence.

Corporate Transactions

Company law and SECP regulations require formal valuations for mergers, acquisitions, rights issues, and significant asset disposals. Auditors require certified valuations when property or equipment is a material balance sheet item.

Insurance Claims

For high-value insurance claims — particularly for property damage — insurers may require an independent IVS valuation to establish the pre-loss value of the asset.

How to Order a Certified IVS Report Through Tasdeeq

The process is straightforward:

  1. Run a free AI estimate first to understand the approximate value range — this helps you set expectations before commissioning the formal report.
  2. From your Tasdeeq dashboard, submit a certified valuation request. Specify the purpose (bank, legal, insurance, etc.) so the report format matches what you need.
  3. A surveyor will contact you within 1–2 business days to schedule the physical inspection.
  4. The IVS-compliant report, signed by a PEC-registered valuator, is issued within 3–5 business days of inspection.
  5. The report comes with a unique digital verification code, allowing any third party to confirm its authenticity at tasdeeq.npm.works/verify-cert.html.