ISLAMABAD: The International Monetary Fund has intensified its pressure on Pakistan by imposing additional conditions to keep the ongoing loan program on course. The lender now demands stronger anti-corruption actions and deeper transparency across state institutions. It specifically requires senior government officials to disclose their assets online by December next year.
The IMF also directs the government to craft a robust action plan that actively reduces corruption risks. Provincial anti-corruption bodies will gain more authority, enabling them to operate with greater independence and effectiveness. By publishing their assets online, officials will face increased public scrutiny, which the IMF views as a crucial step toward rebuilding institutional trust.
Sectoral Reforms and Policy Adjustments
The IMF expands its conditions beyond governance and moves into sectoral reforms. It instructs authorities to develop a clear policy for sugar market liberalization by June. This requirement aims to enhance competition, reduce price manipulation, and stabilize a sector long criticized for opaque practices.
In parallel, the IMF pushes for a comprehensive reform roadmap for the Federal Board of Revenue. It wants Pakistan to broaden the sales tax base, shift more goods to standard tax rates, and reduce exemptions that weaken revenue collection. The government must also present amendments to the Government Companies Act in parliament to improve corporate oversight.
Strengthening Financial Infrastructure
The IMF further stresses the need for sound financial analysis and improved market functioning. It requires Pakistan to prepare an assessment of remittance transfer costs, identifying how much the country spends to channel overseas earnings. Additionally, it orders a study on constraints in the local currency bond market. The findings will help policymakers design strategies that strengthen financial markets and enhance investor confidence.
