IMF Commends Pakistan Efforts in Governance and Corruption Reform

The International Monetary Fund (IMF) has expressed its appreciation for Pakistan’s dedication to conducting a Governance and Corruption Diagnostic Assessment (GCD) and anticipates ongoing collaboration in the future.

A scoping mission led by Joel Turkewitz from the IMF recently traveled to Islamabad between February 6 and 14, 2025, to initiate plans for a Governance and Corruption Diagnostic Assessment (GCD), following a formal request from Pakistan’s government. The IMF disclosed in a statement that the primary goal of this mission was to assess potential vulnerabilities in governance and corruption across six fundamental areas. These areas include fiscal governance, central bank operations, financial oversight, market regulations, rule of law, and measures for preventing money laundering and financing of terrorism (AML-CFT).

Throughout the mission, the IMF team engaged with Pakistan’s key institutions, including the Ministry of Finance, the Federal Board of Revenue (FBR), the State Bank of Pakistan (SBP), the Auditor General’s office, the Securities and Exchange Commission of Pakistan (SECP), the Ministry of Law and Justice, and the Supreme Court.

Furthermore, the IMF delegation held discussions with a variety of other stakeholders such as business groups, civil society organizations, and international development agencies.

The IMF also highlighted that its team would return later in 2025 to further gather information and identify opportunities to strengthen governance and improve economic outcomes, ultimately preparing for a comprehensive GCD assessment.

Looking ahead, Pakistan will host two major IMF missions. One will focus on securing more than $1 billion in financing for climate resilience, while the other will review Pakistan’s ongoing $7 billion Extended Fund Facility (EFF).

In October 2024, Pakistan formally requested around $1 billion under the Resilience and Sustainability Fund (RSF) to tackle climate-related challenges.

Mahir Binici, the IMF’s resident representative in Islamabad, confirmed that a team will visit in March 2025 to conduct the first review of the EFF and RSF request, with a technical team arriving in late February to address key issues regarding the RSF arrangement.