The Ministry of Finance (MoF) clarified that Pakistan’s latest reforms under the International Monetary Fund (IMF) program are a continuation of existing policies, not new conditions.
According to officials, these measures, outlined in the Memorandum of Economic and Financial Policies (MEFP), are part of Pakistan’s ongoing economic strategy since the start of the IMF Extended Fund Facility (EFF) program.
The ministry emphasized that no new requirements have been added to the IMF’s core policy framework.
Reform policies were submitted at the beginning of the EFF program, and their gradual incorporation into the MEFP reflects planned, incremental implementation.
Medium-Term Reform Strategy
The EFF program reflects a clearly defined medium-term reform strategy.
It includes initiatives already being executed by the government to strengthen economic stability and achieve long-term objectives.
For instance, asset declaration requirements for government employees have been in place since May 2024 and align with amendments to the Civil Servants Act, 1973.
Similarly, improvements in the performance and independence of the National Accountability Bureau (NAB) and enhanced cooperation with other investigative agencies were agreed upon in previous IMF reviews.
These measures represent a logical continuation rather than new IMF directives.
Anti-Corruption and Remittance Reforms
Access for provincial anti-corruption agencies to financial information is part of Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) reforms.
These reforms have been included in the EFF since its inception.
Efforts to reduce informal remittance channels have already produced results, with official remittances rising 26% in fiscal year 2025 and projected to increase 9.3% in fiscal year 2026.
Additionally, the State Bank of Pakistan is actively working to lower remittance costs, supporting transparency and financial inclusion.
Sectoral Reforms Beyond IMF Requirements
The government is pursuing reforms independently in key sectors, including development of the local currency bond market, sugar sector restructuring, FBR tax reforms, and privatization of power distribution companies.
A task force led by the Energy Minister consults provinces to prepare recommendations for sugar sector reforms.
While aligned with the EFF program’s goals, these reforms are government-driven initiatives rather than IMF-imposed conditions.
Phased Implementation Ensures Stability
MoF reiterated that all reforms in the latest MEFP are a natural continuation of Pakistan’s agreed reform agenda.
Implemented in phases, these measures aim to strengthen economic stability and ensure sustainable growth.
Describing these reforms as sudden or new is a misunderstanding, the ministry stated, noting that the country’s economic strategy remains consistent with prior IMF agreements.
