ISLAMABAD: The International Monetary Fund (IMF) has dispatched a delegation to Pakistan to carry out a comprehensive evaluation of governance and corruption, including an in-depth review of judicial appointments, judicial independence, and integrity.
The mission, termed the Pakistan Governance and Corruption Diagnostic Assessment, commenced on Thursday and is scheduled to conclude by February 14, according to government and diplomatic sources. This is the first initiative of its kind, highlighting the IMF’s growing focus on governance reforms in the country.
During its stay, the IMF delegation will engage with 19 key government ministries, departments, and state institutions, including the Judicial Commission of Pakistan and the Supreme Court. The assessment will emphasize the rule of law, anti-corruption measures, financial oversight, and eliminating entrenched interests within the governance framework.
Initially planned for September last year, the mission arrives at a time when concerns have been raised by the Islamabad High Court and Supreme Court judges regarding judicial appointments. The recent 26th Constitutional Amendment has altered the appointment process for superior judiciary members, granting politicians a role in the selection procedure.
Sources confirm that the IMF team is scheduled to meet with the Judicial Commission next week to discuss judicial appointments and assess the independence and integrity of the judiciary. The findings from this assessment will be compiled into a report, which Pakistan is obligated to publish by July 2025 as part of its $7 billion loan agreement with the IMF.
Under this agreement, Pakistan has committed to analyzing vulnerabilities in governance and corruption and implementing priority structural reforms with the IMF’s capacity development support.
Focus Areas of the Mission
The IMF delegation will meet with the National Accountability Bureau (NAB) to evaluate the National Anti-Corruption Strategy, corruption severity, and enforcement of anti-corruption laws, including money laundering investigations and prosecutions. The IMF asserts that independent anti-corruption institutions are essential to combat undue influence, enhance policymaking, and ensure effective governance.
The team will also engage with the Financial Monitoring Unit (FMU) to assess suspicious transaction reporting, financial intelligence dissemination, and institutional capacity to counter financial crimes.
A significant aspect of the review includes money laundering risks related to domestic corruption. Meetings with the National Anti-Money Laundering and Combating Financing of Terrorism Authority will explore risk mitigation strategies and their effectiveness in addressing financial crimes.
Legal and Banking Sector Reforms
A crucial discussion will take place with the Ministry of Law and Justice to evaluate the rule of law and potential legal reforms aimed at strengthening judicial independence, property rights, and contract enforcement. The IMF will also hold multiple meetings with the State Bank of Pakistan (SBP), some of which have already taken place, to discuss banking sector governance, financial regulations, and the supervisory framework for state-owned banks.
Additionally, the IMF is expected to review concerns regarding commercial banks’ role in financial misconduct, such as the manipulation of exchange rates and money laundering through solar panel imports. The delegation will assess banking supervision, corporate governance, and regulatory decision-making in the financial sector.
Broader Institutional Engagements
The IMF delegation will also meet with:
- Federal Board of Revenue (FBR) to examine tax policy governance, asset declaration databases, and anti-money laundering measures for non-financial businesses.
- Federal Land Commission to assess land governance and management.
- Ministries of Climate Change and Housing to discuss property rights protections.
- Securities and Exchange Commission of Pakistan (SECP) to evaluate corporate transparency and anti-money laundering oversight in non-banking financial institutions.
- Office of the Auditor General of Pakistan and the Establishment Division to examine bureaucratic asset declaration frameworks.
- National Disaster Management Authority (NDMA) to assess climate adaptation policies and projects.
- Privatization Commission to review state-owned enterprises (SOEs) and managed funds.
- Ministry of Finance to analyze budget preparation, execution, and treasury functions.
- Ministry of Planning to evaluate public investment management, development programs, and public-private partnerships.
- Ministry of Economic Affairs to discuss external debt management and financial data coordination.
The outcome of this assessment will play a crucial role in shaping Pakistan’s structural reform policies and ensuring compliance with IMF conditions. The mission’s findings will be instrumental in addressing governance vulnerabilities, strengthening anti-corruption mechanisms, and promoting economic transparency in Pakistan.
