The IMF is currently in Pakistan to assess the country’s judicial and regulatory systems. This review is part of the ongoing $7 billion Extended Fund Facility (EFF). The mission focuses on governance and corruption vulnerabilities in Pakistan.
Key Areas of Review
The IMF is examining six key governance sectors:
- Fiscal governance
- Central bank operations
- Financial sector oversight
- Market regulation
- Rule of law
- Anti-money laundering measures
These areas are crucial for improving governance and ensuring fair business practices in the country.
Key Governance Areas
| Sector | Focus Area |
|---|---|
| Fiscal Governance | Public finance management |
| Central Bank Operations | Central bank independence and function |
| Financial Sector Oversight | Financial institution regulations |
| Market Regulation | Fair and transparent market conditions |
| Rule of Law | Strengthening legal frameworks |
| Anti-Money Laundering | Combating financial crimes |
Governance and Corruption Report
As part of the review, a Governance and Corruption Diagnostic Assessment (GCDA) will be published by July 2025. This report will highlight vulnerabilities and suggest reforms to tackle corruption and strengthen governance.
GCDA Report Timeline
| Report | Deadline | Focus Area |
|---|---|---|
| GCDA Report | July 2025 | Identifying governance and corruption issues |
| UN Corruption Report | After GCDA | Full disclosure as required under UN framework |
Strengthening Institutions
Pakistan is committed to strengthening institutions to fight corruption. Amendments to the National Accountability Bureau (NAB) Ordinance and empowering provincial anti-corruption bodies are part of these efforts.
Institutional Strengthening Actions
| Action | Objective |
|---|---|
| NAB Ordinance Amendments | Increase NAB’s independence and effectiveness |
| Empower Provincial Anti-Corruption Units | Investigate corruption-related financial crimes |
Transparency and Accountability
In line with IMF commitments, Pakistan will amend the Civil Servants Act 1973 by February 2025. This change will ensure that high-level public officials file their asset declarations digitally, enhancing transparency.
Civil Servants Act Amendment
| Action | Deadline | Objective |
|---|---|---|
| Amend Civil Servants Act 1973 | February 2025 | Make asset declarations publicly accessible |
Summary
The IMF’s mission will help Pakistan address its governance and corruption challenges. The recommendations from this review aim to foster transparency, improve institutional efficiency, and promote sustainable economic growth.
