Pakistan declines IMF technical mission on governance, anti-corruption reforms: report

Pakistan has declined an offer by the International Monetary Fund to send a technical assistance mission to support implementation of reforms aimed at strengthening governance and anti-corruption frameworks under the country’s $7 billion bailout programme, The Express Tribune reported. 

The proposal was reiterated during ongoing review discussions of the programme, but the finance ministry informed the lender that the government has sufficient internal capacity to implement the reform agenda, Tribune cited sources familiar with the talks as saying.

The reform plan, developed following the IMF’s Governance and Corruption Diagnostic Assessment, requires Pakistan to implement 142 measures over three years. The framework includes 59 priority actions and 83 complementary measures announced by Prime Minister Shehbaz Sharif.

Despite declining the IMF mission, the government has already received support from the United Kingdom’s Foreign, Commonwealth and Development Office to assist with the implementation of the reform programme. The corruption diagnostic report was made public after a delay of about two months and only after the IMF set its release as a prior condition for approving a $1.2 billion loan tranche.

A report by the Global Think Tank Network reviewed the IMF diagnostic study and said that while the analysis was detailed, several areas remained insufficiently addressed. It noted weaknesses in enforcement mechanisms, limited focus on subnational governance and insufficient safeguards for institutional independence.

The think tank also observed that recommendations on key appointments, including the National Accountability Bureau chairman, emphasised transparency but did not expand the candidate pool beyond traditional state institutions.

The latest discussions between Pakistan and the IMF are being held virtually after the IMF mission left the country due to security concerns. During the review, the lender also requested quarterly reports on progress in implementing the governance reforms. Officials from the finance ministry indicated that the government may instead publish progress updates twice a year on its website.

The IMF further asked whether civil society representatives had been included in the oversight mechanisms established to monitor the reforms. Government officials said civil society members would be incorporated into the implementation committees.

Three committees have been established to supervise the reform process: the Economic Governance Systems Committee headed by the planning minister, the Tax Administration Committee led by the finance minister, and the Anti-Corruption and Anti-Money Laundering Committee chaired by the law minister. These bodies are tasked with coordinating institutions and overseeing implementation of the reform measures.

As part of the programme review, the IMF has also scheduled discussions to examine Pakistan’s anti-money laundering and counter-terrorism financing frameworks.

Pakistan has committed to strengthening investigations and prosecutions of money laundering offences, including removing legal ambiguity over the need for a predicate conviction, improving the quality and number of suspicious transaction reports and enhancing the investigative capacity of law enforcement agencies.

The government has also pledged to improve asset recovery cooperation and introduce stronger accountability mechanisms for senior civil servants, including publication of asset declarations starting in 2026 and the introduction of risk-based verification of those declarations.

Finance Minister Muhammad Aurangzeb said the IMF delegation, which left Islamabad on Monday citing security concerns, is currently in Istanbul and that he remains in contact with its members. He added that negotiations with the IMF will continue virtually for the next eight to 10 days.