Pakistan is working closely with the International Monetary Fund as the global lender pushes Islamabad to tighten governance, strengthen transparency, and fix structural weaknesses across state institutions. In its latest Governance and Corruption Diagnostic Assessment, the IMF warns that persistent vulnerabilities are undermining revenue collection, legal certainty, and public spending efficiency. If Pakistan implements the full 15-point reform plan, the fund estimates economic growth could rise by 5 to 6.5 percent over the next five years, offering a crucial boost at a time when the country remains under dual IMF programs and seeks long-term stability.
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The diagnostic urges reforms across ministries and regulators including PPRA, SIFC, SECP, FBR, NAB, and the ministries of law, finance, IT, and planning. It calls for transparent procurement free of state-enterprise preferences, public disclosure of SIFC investments, digitized regulatory systems, and improved monitoring of courts and tribunals. The fund also recommends publishing a tax simplification strategy by 2026 and restructuring FBR to strengthen human resources and reduce unchecked autonomy in field offices.
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The report, published by Pakistan’s finance ministry, follows an IMF mission that recently flagged accounting discrepancies and reviewed progress under the $7 billion bailout secured in 2024. With another $1.2 billion awaiting board approval, IMF officials emphasize that governance reforms are not optional but essential to restoring investor confidence, supporting private-sector growth, and ensuring Pakistan’s economic turnaround remains durable and credible.
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