ISLAMABAD: The International Monetary Fund (IMF) is currently assessing Pakistan’s judicial and regulatory framework as part of the ongoing $7 billion Extended Fund Facility (EFF). The evaluation aims to address governance and corruption-related vulnerabilities, according to a statement from the Ministry of Finance.
A technical delegation from the IMF is conducting a week-long review of six key governance sectors and institutions to ensure transparency and institutional strengthening. In October, Pakistan pledged to enhance its ability to combat corruption, promote inclusive growth, and create a fair environment for businesses and investors.
As part of this commitment, Pakistan is required to publish a Governance and Corruption Diagnostic Assessment (GCDA) report by July 2025, which will identify governance weaknesses and recommend structural reforms.
Scope of IMF’s Review
The IMF mission is engaging with senior members of the judiciary and leadership from financial, revenue, and electoral institutions to assess governance processes. The review focuses on six critical areas:
- Fiscal governance
- Central bank operations and oversight
- Financial sector supervision
- Market regulation
- Rule of law
- Anti-money laundering and counter-terror financing
To conduct this evaluation, the IMF team is working closely with key government institutions, including:
- Ministry of Finance
- Federal Board of Revenue (FBR)
- State Bank of Pakistan (SBP)
- Auditor General of Pakistan
- Securities and Exchange Commission of Pakistan (SECP)
- Election Commission of Pakistan (ECP)
- Ministry of Law and Justice
The GCDA report will propose measures to mitigate corruption risks, enhance governance standards, and improve institutional integrity. These recommendations are expected to support government efforts in increasing transparency, strengthening institutions, and fostering sustainable economic development.
IMF’s Approach to Governance Reforms
The Ministry of Finance highlighted that the IMF has consistently provided guidance and technical assistance to improve governance. While the organization primarily focuses on economic stabilization—such as correcting fiscal imbalances, reducing inflation, and enhancing trade efficiency—it has also recognized the importance of governance reforms in building investor confidence and ensuring long-term growth.
The IMF has emphasized that strong governance, adherence to the rule of law, and anti-corruption measures are essential for economic prosperity. In 1997, the organization introduced a governance policy, later expanded in 2018 under the Framework for Enhanced Engagement on Governance. This framework facilitates comprehensive assessments and targeted recommendations to improve governance and combat corruption in member countries.
Since 2018, over 20 GCDA reports have been completed for countries including Sri Lanka, Cameroon, Mauritania, Zambia, and Benin, while several others are underway. Pakistan’s assessment aligns with these efforts and reflects its commitment to institutional reforms.
Commitments for Anti-Corruption Measures
As part of its pledge to strengthen governance, Pakistan has agreed to immediately publish the UN Convention Against Corruption (UNCAC) Review Report upon completion. Additionally, the government may introduce legislative amendments—subject to Supreme Court approval—to enhance the National Accountability Bureau (NAB)’s autonomy and effectiveness.
To reinforce anti-corruption efforts, Provincial Anti-Corruption Establishments (PACEs) could be granted authority under anti-money laundering laws, enabling them to conduct financial investigations and access intelligence from the Financial Monitoring Unit (FMU). Furthermore, officials will receive specialized training to enhance their investigative capabilities.
Under another structural benchmark set for February 2025, Pakistan must amend the Civil Servants Act (1973) to ensure that asset declarations of senior public officials (BPS 17-22) are digitally recorded and made publicly accessible, while safeguarding personal data privacy.
These governance reforms aim to enhance transparency, accountability, and institutional integrity, supporting Pakistan’s broader economic stabilization and growth objectives.
