Islamabad: The International Monetary Fund has pressed Pakistan to fully operationalise its Sovereign Wealth Fund by meeting tough legal and financial conditions. Officials confirmed on Monday that the government has already sent key amendments to Parliament to bring the fund in line with international standards. These changes will serve as a structural benchmark after the approval of the next budget.
Strict Rules to Protect Public Finances
Under the IMF’s conditions, the Sovereign Wealth Fund will face clear restrictions. It cannot borrow money, provide guarantees, lend to any entities, or take part in public-private partnership projects. The fund will also stay away from acquiring financial assets or receiving contributions from state-owned enterprises and financial institutions.
Transitioning to fiscal protections, the government assured the IMF that all revenues generated by the SWF will flow directly into the national treasury. The fund will not retain any public money. Any investment capital will come through proper budgetary allocations under the Public Finance Management Act. These steps aim to shield public finances while allowing the fund to operate professionally.
Progress on State-Owned Enterprises Reform
Pakistan is moving ahead with broader reform of its SOEs. The country’s government has already referred six SOE related amendments to Parliament. They expect to complete the process for the remaining organizations by August 31, 2026. Ten SOEs have been evaluated at the first stage of the process.
Therefore, Pakistan is committed to improving its economic system. The successful implementation of the Sovereign Wealth Fund can draw high-quality investments.
