ISLAMABAD: The International Monetary Fund (IMF) has issued a stern warning to Pakistan, urging immediate action against corruption and political harassment related to corruption cases.
On September 25, the IMF Executive Board approved a 37-month Extended Fund Facility (EFF) arrangement for Pakistan, amounting to approximately $7 billion. This arrangement aims to support the country’s economic stability and growth, with key objectives including sustainable public finances, reduced inflation, and strengthened external buffers.
The IMF emphasized the necessity of an effective investigation system to combat corruption, recommending that the National Accountability Bureau (NAB) be made more independent and efficient, in line with a recent Supreme Court decision. The Fund has called for a comprehensive action plan to eradicate corruption by June 2025.
Additionally, the IMF highlighted the importance of digitizing the Federal Board of Revenue (FBR) to ensure public declarations of assets by all government officials, including parliamentarians. The Fund pointed out that corruption undermines Pakistan’s reform efforts and noted that NAB is often not provided with accurate data necessary for effective investigations. “The government must ensure that NAB receives accurate data to investigate corruption cases effectively,” stated the IMF.
In a recent report, the IMF outlined new loan conditions for Pakistan, urging the government to stabilize the macroeconomic situation as per the loan agreement. The IMF has called for economic reforms, favorable conditions for the private sector, an expanded tax net, reduced government spending, and expedited reforms in state-owned enterprises.
The report projects Pakistan’s GDP growth to remain between 4% to 4.5% for FY2024-25 to 2029-30, with inflation anticipated to range from 6.6% to 9%. On September 27, Pakistan received the first tranche of the IMF’s loan, with the State Bank of Pakistan receiving SDR 760 million, equivalent to approximately $1.03 billion.
