Pakistan launches 15-point action plan for IMF review to tackle corruption, governance issues

Pakistan has released a 15-point action plan in response to the Governance and Diagnostic Assessment Report (GCD) ahead of the upcoming IMF review mission, which aims to address corruption vulnerabilities and improve governance by identifying the top 10 high-risk federal agencies with macro-critical exposures, The News reported. 

A 240-page detailed document outlines comprehensive criteria and frameworks for evaluating court performance, including alternative dispute resolution (ADR) mechanisms. It also emphasises the establishment of analytic and predictive capacities for active case management.

The action plan includes measures to reduce the backlog of economic disputes, with the first-year focus on developing a methodology for assessing court and judicial performance. In the second year, the plan aims to publish a performance report for all Administrative Tribunals and Special Courts involved in economic and commercial matters.

A key component of the plan is the legislative review of the Anti-Money Laundering (AML) Authority 2010. The AML/CFT Authority will form a Joint Working Group (JWG) to review the AMLA and eliminate ambiguities, particularly concerning the need for predicate offence convictions for prosecuting money laundering. Amendments to the AMLA will be submitted to Parliament and implemented by June 2027.

The National Accountability Bureau (NAB) will lead efforts to draft a national corruption risk assessment, working in coordination with other key agencies, including the Federal Investigation Agency (FIA) and the Securities and Exchange Commission of Pakistan (SECP). This assessment will focus on identifying corruption risks in federal agencies, particularly those with macro-critical exposures.

The National Anti-Corruption Task Force, established under the AML/CFT Authority, will oversee the creation of a centralised Corruption Risk Assessment Framework. This framework will guide the identification of the top 10 high-risk agencies and develop a detailed risk reduction action plan. The plan will include systemic measures and agency-specific actions, with clear Key Performance Indicators (KPIs) and defined roles for each ministry and agency.

The Financial Monitoring Unit (FMU) will issue new corruption-specific reporting guidelines, enhancing the quality of Suspicious Transaction Reports (STRs) related to corruption. 

Additionally, the Pakistan Virtual Asset Regulatory Authority (PVARA) will be integrated into the reporting framework to strengthen oversight.

These measures are part of Pakistan's broader efforts to combat corruption and strengthen institutional frameworks in line with the IMF’s expectations for governance reforms.