IMF Lauds Pakistan’s Determination Towards Governance and Anti-Corruption
Pakistan has been commended by the International Monetary Fund (IMF) for its determination to strengthen governance and address corruption. An IMF mission recently toured Pakistan to review the governance system of the country under the ongoing $7 billion Extended Fund Facility (EFF). The mission aimed to review the country’s judicial system, regulatory behaviors, and governance and corruption vulnerabilities.
Between February 6 and 14, IMF officials, headed by Joel Turkewitz, discussed priority reforms with Pakistani authorities, including Chief Justice Yahya Afridi. The IMF announcement pointed to the country’s intention to undertake a Governance and Corruption Diagnostic Assessment (GCD), which aims to find weaknesses and areas for improvement.
The IMF team expressed gratitude for the government’s efforts in this respect and awaited greater cooperation in the future. The IMF further reported that it would send its team back later this year to continue collecting data and discuss a solution to further reinforce governance, integrity, and economic results in Pakistan.
Major Focus Areas during the IMF Mission
During their visit, the IMF mission concentrated on six key areas that affect Pakistan’s governance and corruption risks:
Fiscal Governance
Central Bank Governance
Financial Sector Oversight
Market Regulation
Rule of Law
Anti-Money Laundering & Combating the Financing of Terrorism (AML-CFT)
The IMF mission met with different government institutions, such as the Finance Division, the Federal Board of Revenue, the State Bank of Pakistan, and the Supreme Court. They also met with business communities, civil society, and international development partners to collect a broad array of views.
Future IMF Missions for Additional Funding
Besides this evaluation, Pakistan is anticipating further talks with the IMF for extra financing. Pakistan officially asked for over $1 billion under the Resilience and Sustainability Trust (RSF) in October 2024 to meet the nation’s climate change needs.
Mahir Binici, the IMF’s resident representative in Pakistan, confirmed that a technical team of the IMF would visit Pakistan later in February and early March to negotiate the RSF arrangement and other technical issues.
The funding under the RSF will be used for high-quality reforms aimed at enhancing the climate resilience of Pakistan and will be repayable over 30 years with a 10-year grace period, which is an attractive financial package compared to the existing $7 billion loan facility.
Through these efforts, Pakistan aims to enhance its governance systems and build long-term resilience against climate change while improving its economic stability.
