Engagement Agreement Template for Pakistan

An Engagement Agreement sets out the terms and duties between a service provider and their client in Pakistan. It spells out what work will be done, how much it costs, and when payments are due. Common in professional services like law firms, accounting practices, and consulting agencies, these agreements protect both parties by creating clear expectations.

Under Pakistani contract law, a well-crafted Engagement Agreement includes service scope, timelines, confidentiality rules, and dispute resolution methods. It differs from general contracts by focusing specifically on professional services and following guidelines set by professional bodies like the Pakistan Bar Council and Institute of Chartered Accountants of Pakistan. Having this written agreement helps avoid misunderstandings and provides legal backup if issues arise.

Use an Engagement Agreement whenever you're hiring professional services in Pakistan - especially for legal counsel, accountants, consultants, or specialized contractors. This agreement becomes essential at the start of any significant professional relationship, before work begins or money changes hands.

The timing matters most when dealing with complex projects, high-value services, or regulated industries. For example, bringing on a tax consultant during year-end reporting, hiring an architect for construction projects, or engaging legal counsel for corporate matters. Pakistani law recommends documenting these relationships early to protect both parties and meet regulatory requirements from bodies like SECP and professional councils.

• Service Engagement Letter: Standard format for general professional services, covering basic terms and deliverables
• Engagement Letter Accounting: Specialized for accounting services, including audit scope and reporting requirements
• Consulting Engagement Letter: Focused on consulting projects with milestone-based deliverables
• Outsourced CFO Services Engagement Letter: Detailed financial management responsibilities and reporting structure
• Financial Engagement Letter: Specific to financial advisory services with compliance and regulatory considerations

• Professional Service Providers: Law firms, accounting practices, consultants, and financial advisors who draft and issue Engagement Agreements to formalize client relationships
• Corporate Clients: Companies seeking professional services, with their legal teams reviewing and negotiating terms
• Regulatory Bodies: SECP, Pakistan Bar Council, and ICAP who set standards for professional engagements
• In-house Legal Teams: Review and customize agreements to protect company interests
• Company Directors: Authorized signatories who execute agreements on behalf of their organizations
• Compliance Officers: Monitor adherence to agreement terms and regulatory requirements

• Basic Details: Gather complete contact information and legal names of all parties, including business registration numbers
• Scope Definition: List specific services, deliverables, timelines, and any exclusions from the engagement
• Financial Terms: Document fee structure, payment schedules, and billing procedures that comply with Pakistani tax laws
• Legal Requirements: Check professional body guidelines and regulatory requirements for your industry
• Documentation: Collect necessary licenses, certifications, and proof of professional qualifications
• Template Selection: Use our platform's custom-generated templates to ensure all mandatory elements are included correctly
• Internal Review: Have key stakeholders review draft terms before finalizing

• Identification Details: Full legal names, addresses, and registration numbers of all parties involved
• Service Scope: Detailed description of services, deliverables, and performance standards
• Fee Structure: Clear payment terms, rates, and billing procedures compliant with Pakistani tax laws
• Duration and Termination: Agreement period, renewal terms, and conditions for ending the engagement
• Confidentiality Clause: Protection of sensitive information as per Pakistani data protection requirements
• Dispute Resolution: Jurisdiction choice and arbitration procedures under Pakistani law
• Professional Standards: Compliance with relevant regulatory body requirements
• Liability Limitations: Clear boundaries of professional responsibility and indemnification terms

A key document often confused with an Engagement Agreement is the Advisory Agreement. While both involve professional services, they serve distinct purposes in Pakistani business law.

• Scope and Duration: Engagement Agreements typically cover specific projects or services with clear deliverables and end dates, while Advisory Agreements establish ongoing relationships for general guidance and consultation
• Payment Structure: Engagement Agreements usually specify project-based or hourly fees with milestone payments, whereas Advisory Agreements often involve retainer fees or regular monthly payments
• Legal Obligations: Engagement Agreements create detailed performance obligations and specific deliverables, while Advisory Agreements focus on availability and expertise sharing without concrete deliverables
• Professional Liability: Engagement Agreements typically carry higher professional liability requirements and more specific indemnification clauses due to their project-focused nature