IMF Seeks Special Audit of Pakistan’s Supplementary Grants

The IMF has called for a special audit of Pakistan’s supplementary grants issued over the past ten years to boost transparency and strengthen public finance reforms.

Supplementary grants allow the government to allocate extra funds beyond the approved budget. Concerns over oversight and efficiency have prompted reforms to modernize Pakistan’s budgetary framework and public finance management (PFM).

IMF Mission & Actions:

• IMF technical team arrived in Islamabad to assess fiscal reforms.
• Proposed limits on issuing supplementary grants without parliamentary approval.
• High-powered committee to monitor the digitized Public Finance Management Master Plan.

Government Steps:

• Finance and Planning Ministries to jointly issue the Budget Call Circular ahead of next fiscal year.
• Auditor General of Pakistan to audit supplementary grants for transparency.
• Potential amendments to the Public Finance Management Act under consideration.

IMF’s engagement aims to enhance fiscal discipline, reduce inefficiencies, and align Pakistan’s financial governance with international best practices. Analysts believe these reforms are critical for strengthening public finance management in the country.