Pakistan Declines IMF Offer for Technical Mission on Governance Reforms

Pakistan has once again declined an offer from the International Monetary Fund (IMF) to send a technical assistance mission aimed at addressing gaps in the country’s governance and anti-corruption framework.

According to sources, the IMF reiterated its proposal during a review meeting of the $7 billion bailout package. However, the Ministry of Finance maintained that the government possesses sufficient internal capacity to implement the 142-point governance action plan.

Officials said the IMF has previously expressed interest in providing technical support to strengthen governance and tackle rising corruption challenges in Pakistan. The government is already receiving implementation support for the action plan from the UK’s Foreign, Commonwealth & Development Office (FCDO).

Prime Minister Shehbaz Sharif had unveiled a reform agenda comprising 59 priority and 83 supplementary measures to fulfill IMF conditions, with implementation scheduled over the next three years.

Earlier, the government released a corruption diagnostic report nearly two months late after the IMF made it a prior condition for approving a $1.2 billion tranche.

Meanwhile, a recent report by a global think tank network described the IMF’s diagnostic assessment as analytically strong and unusually candid, though it noted that certain key areas were overlooked. The report highlighted weaknesses in implementation mechanisms, delays or dilution of sensitive reforms, insufficient review of provincial governance, and limited assurance of institutional autonomy.

Sources further revealed that the IMF has asked the government to issue quarterly progress reports on the governance action plan. The Fund also inquired whether civil society representatives are included in the three implementation committees, to which the government assured that civil society participation would be incorporated.

In addition, the IMF has held a virtual meeting to further review Pakistan’s measures against money laundering and terrorist financing. Pakistan pledged to strengthen investigation and prosecution of money laundering cases, improve the quality and volume of suspicious transaction reports, enhance institutional capacity for financial investigations, and improve cooperation on asset recovery.