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Pakistan has assured the International Monetary Fund (IMF) that all gaps flagged in its latest governance and corruption assessment will be fixed before the Fund’s next $1.2 billion board review. This reassurance comes as the IMF prepares to decide the next tranche of Pakistan’s $7 billion Extended Fund Facility. The government says it will implement governance reforms outlined in the IMF report to keep the loan programme on track.
Finance Minister Muhammad Aurangzeb said the shortcomings identified by the IMF must be addressed without delay.
“These are points identified by the IMF that require action, and we will work to resolve them,” he said in a televised interview.
The IMF’s Governance and Corruption Diagnostic Assessment, released last week, warns that weak institutions, corruption vulnerabilities and poor administrative controls continue to slow Pakistan’s economic progress. The report mandatory before the next IMF disbursement states that corruption has undermined public spending, revenue collection and public trust.
The assessment highlights repeated unofficial payments for basic services, influence of privileged groups in major economic sectors, and longstanding judicial weaknesses including delayed cases and outdated laws. According to the report, these factors disrupt contract enforcement and threaten investor confidence.
The IMF has proposed a 15 point reform agenda focused on governance, transparency and accountability. Recommendations include ending special privileges in public contracts, shifting all government procurement to a digital system within one year, and strengthening parliamentary oversight of fiscal authority. The report says that improved governance would bring “significant economic benefits” and support sustainable, private sector led growth.
Aurangzeb said Pakistan will align its reforms with IMF suggestions to ensure smooth approval of the next tranche and strengthen investor confidence in the economy.
