The International Monetary Fund (IMF) has directed Pakistan to implement an asset disclosure system for government officers by December 2025. The system will require officers from grades 17 to 22 to declare their assets, with penalties for false submissions.
This development came during discussions between the IMF mission and Pakistan’s economic team, led by Finance Minister Muhammad Aurangzeb, as part of the ongoing review of the country’s economic reforms and fiscal performance.
Asset Disclosure System for Bureaucrats
The IMF emphasized that Pakistan must amend the Government Servants (Conduct) Rules 1964 to ensure accountability. The new framework will allow asset declarations to be filed digitally, making monitoring easier.
The Federal Board of Revenue (FBR) has been tasked with providing technical assistance to the Establishment Division. Under the proposed mechanism, the FBR will identify incorrect or incomplete declarations. Government officers who submit false details will face investigations and penalties.
Currently, exemptions are enjoyed by several powerful institutions, including the State Bank, NEPRA, OGRA, and PTA. However, the IMF insists these exemptions undermine transparency and fuel corruption concerns.
Pakistan has nearly 25,000 officers in grades 17 to 22, and there is widespread perception that many underreport their assets. The IMF’s directive aims to close loopholes, strengthen accountability, and build public trust in governance.
IMF’s Push for Governance and Transparency
The IMF has also asked Pakistan to ensure the timely publication of the Governance and Corruption Diagnostic (GCD) Assessment Report. The deadline for this report’s release was set for September 30, 2025, and the Fund has warned against further delays.
The GCD Assessment highlights weaknesses in public finance management, FBR’s tax collection, and AGPR’s systems. Islamabad had raised objections to the draft report, but discussions have now moved toward ensuring its publication and setting timelines for recommended reforms.
Additionally, the IMF wants Pakistan to separate the Tax Policy Unit (TPU) from the FBR, placing it under the Ministry of Finance. The move is expected to strengthen policy-making independence.
Flood Relief and Fiscal Challenges
During the meeting, Pakistan requested IMF approval for a Prime Minister’s Relief Package to support flood-affected areas. The government proposed using emergency funds already allocated in the 2025–26 budget. However, the IMF insisted on a Damage and Needs Assessment (DNA) before releasing funds.
The provinces also reported losses from recent floods. Khyber Pakhtunkhwa’s damages were estimated at Rs40 to Rs50 billion, while Punjab’s losses remain unreported but are expected to be higher due to agricultural and livestock impacts.
At the same time, Pakistan is struggling to maintain a primary surplus target of 2.4% of GDP. The IMF has reminded Islamabad of the provincial commitment to contribute Rs1.5 trillion in revenue surplus to help narrow the fiscal deficit.
GDP Growth Target Revision
The IMF mission also raised concerns about Pakistan’s GDP growth target. Initially set at 4.2%, the target is now expected to be revised downward to 3.9% due to the devastating floods and agricultural losses.
Finance Minister Aurangzeb briefed the IMF on macroeconomic indicators, fiscal discipline, and recovery challenges. While the IMF acknowledged Pakistan’s progress, it stressed the urgent need for institutional reforms to ensure accountability.
A Critical Step Toward Accountability
The IMF has been pressing Pakistan since last year to improve asset declaration systems for civil servants. With growing public distrust and repeated delays, the Fund has now made this requirement a condition for continued cooperation.
If implemented effectively, the asset disclosure system could mark a significant step toward curbing corruption, ensuring accountability, and strengthening governance in Pakistan. However, resistance from within the bureaucracy is expected, as many officers are wary of exposing their wealth to public scrutiny.
