The International Monetary Fund (IMF) has pinpointed corruption, bureaucratic red tape, and a weak business climate as major obstacles to Pakistan’s development. In response, the government has committed to tackling these issues by promoting transparency and accountability within the public sector. Measures to curb corruption and prevent abuse of power have been assured to the IMF.
A recent report shared with the IMF details the government’s plan to disclose the assets of senior bureaucrats to curb corruption. Public officials in grades 17 to 22 will be required to declare their domestic and foreign assets, including those held by their families. These changes, to be incorporated into the Civil Service Act, are expected to be enacted by February 2025. Following this, the Federal Board of Revenue (FBR) will digitize the asset declaration system.
Additionally, the government aims to strengthen the National Accountability Bureau (NAB) to improve oversight and investigations into corruption cases. Public officials will be held accountable to prevent them from accumulating illegitimate assets, as the IMF has been assured.
Following a Supreme Court ruling to grant the NAB greater autonomy, the government has promised to enhance its investigative powers and address political interference that often affects corruption convictions. This commitment also involves tackling issues around low conviction rates, political accusations, and limited investigative capacity.
The IMF welcomed these commitments, stressing that strong governance and anti-corruption institutions are essential for Pakistan’s economic growth and reforms. However, the IMF cautioned that vested interests could undermine or reverse these efforts.
To enhance transparency, Pakistan has pledged to publish an actionable anti-corruption plan by July 2025. The country also plans to release a comprehensive report on its implementation of the United Nations Anti-Corruption Convention as part of its broader commitment to global standards.
In support of its reform agenda, Pakistan has requested the IMF’s assistance with governance and corruption assessments. Meanwhile, the IMF has projected that Pakistan will need approximately $110 billion in external financing over the next five years, following its successful handling of $18.81 billion in external financing this year.
The IMF’s report states that Pakistan’s ability to meet debt obligations will depend on effective policy implementation and timely external funding. Notably, assurances have been secured for the rollover of $16.8 billion in loans this year from countries like China and Saudi Arabia, along with $2.5 billion from the Asian Development Bank and the Islamic Development Bank.
Looking ahead, Pakistan is anticipated to roll over $6.6 billion in loans from international commercial banks over the next three years, with an estimated $14 billion expected from global financial institutions by 2028.
