The International Monetary Fund (IMF) has recommended that Pakistan discontinue the special treatment for parliamentarians’ projects and integrate them into the regular Public Sector Development Programme (PSDP) process, The Express Tribune reported. Â
The IMF’s suggestion aims to enhance the efficiency, transparency, and affordability of these projects. The IMF’s Governance and Corruption Diagnosis Assessment report, set to be released by the government later this month, highlights the need to ensure that these small-scale community welfare projects follow standard approval procedures, rather than being bypassed by a Steering Committee on SDGs Achievements Programme, which lacks in-depth scrutiny.
According to the report, the government allocated Rs70 billion for parliamentarians’ schemes for the current fiscal year, which are funded outside the PSDP, leading to inefficiencies and misuse of funds. The IMF also emphasised the importance of limiting PSDP allocations for new projects to just 10% of the total amount to prevent the strain on already limited resources.
The IMF further urged the Ministry of Finance to bring forward the publication of the Budget Strategy Paper to January, including macroeconomic and fiscal indicators. The IMF has consistently advised the government to avoid mid-year budget adjustments without prior parliamentary approval and suggested maintaining a contingency pool to manage unexpected expenses.
Additionally, the IMF proposed amending the Public Procurement Regulatory Authority (PPRA) law to eliminate preferential treatment for state-owned entities and charitable organizations in procurements, ensuring greater transparency and accountability in the process.
The report follows ongoing concerns over the government’s reliance on supplementary grants. The IMF has long advocated for more effective public finance management, urging the government to adhere to parliamentary procedures and avoid bypassing approvals.
