Pakistan Meets IMF Condition With New PPP Risk Monitoring System

Pakistan has met another major condition set by the International Monetary Fund (IMF) as the federal government introduced a new risk monitoring and disclosure system for public-private partnership (PPP) projects. The move aims to improve transparency, track hidden liabilities, and prevent sudden fiscal shocks, with total PPP-related financial exposure now estimated at Rs. 472.3 billion.

As part of IMF-backed fiscal reforms, Pakistan committed to strengthening oversight of long-term financial risks arising from PPP projects. These projects often carry hidden obligations such as government guarantees, exchange rate risks, and cost escalations, which traditionally remain outside annual budget documents. The IMF has repeatedly stressed the need for better reporting of contingent liabilities to safeguard macroeconomic stability.

According to official documents, the Ministry of Finance has rolled out a centralized risk monitoring system under which both federal and provincial governments will submit detailed PPP reports every six months. The Federal Risk Management Unit (RMU) will consolidate this data and publish it through standardized fiscal risk statements.

A senior official noted, “This system will help anticipate future financial pressures, ensure transparency, and align Pakistan’s fiscal reporting with international standards.”

The documents reveal that emergency and contingent liabilities from PPP projects stand at Rs. 368 billion, while cost escalations in development schemes have added liabilities exceeding Rs. 150 billion. Financial guarantees alone account for Rs. 104 billion.

Sindh faces the highest exposure at Rs. 335.6 billion, followed by federal PPP projects at Rs. 90.6 billion. Punjab’s liabilities are estimated at Rs. 26.5 billion, while Khyber Pakhtunkhwa’s exposure stands at Rs. 19.6 billion.

Experts warn that factors such as a rising dollar, interest rate volatility, and minimum revenue guarantees continue to amplify fiscal risks linked to PPP contracts.

Under the new framework, PPP-related risks will no longer remain off the books. Systematic disclosure is expected to strengthen fiscal discipline, reduce the risk of unexpected budgetary shocks, and enhance Pakistan’s credibility with international lenders, particularly the IMF.