Govt Raises Objections Over IMF’s Institutional Reform Demands

ISLAMABAD: The government has raised strong objections to several recommendations outlined in the International Monetary Fund’s (IMF) draft Governance and Corruption Assessment Report for Pakistan, with officials considering a formal written challenge to parts of the document.

A key meeting of stakeholders was held at the Ministry of Finance last week to draft Pakistan’s official response. According to sources, the government is particularly opposed to the IMF’s proposal to establish a new authority tasked with declaring the assets of bureaucrats. Officials argue that institutions such as the Federal Board of Revenue (FBR) already perform this function.

They further noted that the government has already begun a “rightsizing” initiative aimed at limiting the scope of various departments. In this context, they believe forming a new authority would lead to duplication of responsibilities and increase the administrative burden.

The IMF’s draft report highlights several areas of concern in Pakistan’s governance structure, including weaknesses in public finance management, tax administration, the role of the Auditor General, procurement systems, and anti-money laundering enforcement mechanisms.

The Fund has also recommended tighter controls on supplementary grants, requiring prior approval from parliament. It further demanded that development schemes for lawmakers be fully integrated into the annual budget. Additionally, the IMF urged Pakistan to publish the budget strategy paper in advance to promote transparency and fiscal discipline.

While the IMF has cited examples from other countries to justify its proposals, Pakistan has yet to formally approve the release of the assessment report. Officials indicated that Islamabad is likely to seek amendments to the draft before it is made public.

Moreover, the IMF has recommended the removal of the Secretary Finance from the Board of Directors of the State Bank of Pakistan (SBP), a move that has added to the government’s reservations over the report.

Read More: UK Calls for Immediate Ceasefire in Gaza, Signals Plan to Recognize Palestine at UN