IMF - International Monetary Fund Program Updates
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ghazi52
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Govt partially meets 19 IMF actions
Three key reforms delayed as procurement rules await cabinet approvalShahbaz Rana
August 21, 2026
ISLAMABAD: Despite being a top priority for both the International Monetary Fund (IMF) and Prime Minister Shehbaz Sharif, the government managed to complete only four out of 19 actions due by end-June, which the global lender had identified to improve weak economic governance.
Proceedings of the Economic Governance Systems Committee – one of three ministerial bodies tasked with implementing the IMF action plan – show that only four actions were fully met during the January-June 2026 period.
Planning Minister Ahsan Iqbal, who heads the committee, chaired its fourth meeting this week and directed officials to expedite progress on the remaining action points.
According to top government officials, of the 19 priority and complementary actions assigned to the committee for completion by June, 12 were only partially implemented, while three were delayed.
ghazi52
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The IMF had highlighted serious governance gaps in its Pakistan Governance and Corruption Diagnostic Assessment. To address these vulnerabilities, which can foster corrupt practices, the prime minister launched a 142-point reform agenda in December last year, aimed at strengthening institutions and the rule of law over three years.
Of the 142 actions, Iqbal's committee was responsible for overseeing 59 actions. For the first six months, 19 fell under the Economic Governance Systems committee.
During the launching ceremony at the PM's House, Sharif said under his governance plan, there were 59 priority actions and 83 complementary actions that would be implemented over three years.
However, performance against the initial targets remained weak. Most of the 19 actions due by June, largely considered easier tasks involving regulatory changes and publication of reports, were not completed.
Only four actions were declared complete: formation of a methodology working group, review of international best practices in judicial governance, some legal clarifications, and revisions to civil servants' asset declaration rules.
Of the 142 actions, Iqbal's committee was responsible for overseeing 59 actions. For the first six months, 19 fell under the Economic Governance Systems committee.
During the launching ceremony at the PM's House, Sharif said under his governance plan, there were 59 priority actions and 83 complementary actions that would be implemented over three years.
However, performance against the initial targets remained weak. Most of the 19 actions due by June, largely considered easier tasks involving regulatory changes and publication of reports, were not completed.
Only four actions were declared complete: formation of a methodology working group, review of international best practices in judicial governance, some legal clarifications, and revisions to civil servants' asset declaration rules.
ghazi52
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Partially completed actions
The government partially implemented a key reform to approve the new Public Procurement Rules 2025 by removing preferential treatment for state-owned enterprises (SOEs) in public contracts.
Currently, contracts are often awarded to SOEs without competitive bidding, despite their limited capacity and without independent price discovery. Several infrastructure projects, including the NIH underpass in Islamabad, have faced delays under such arrangements.
A finance ministry official said the PM's Office has endorsed the draft rules, which are now with the Cabinet Committee on Legislative Cases (CCLC) awaiting cabinet approval. Revising these rules in line with IMF requirements would mark a significant shift from the existing practice of awarding multi-billion-rupee contracts without open competition.
Another IMF condition required an assessment of systemic strengths and weaknesses in the judicial system, particularly in economic dispute resolution. Officials said this had been partially met, with reviews of relevant laws, policies and reports still underway.
Similarly, a working group tasked with examining the causes of litigation delays and case backlogs has only partially completed its work.
The government partially implemented a key reform to approve the new Public Procurement Rules 2025 by removing preferential treatment for state-owned enterprises (SOEs) in public contracts.
Currently, contracts are often awarded to SOEs without competitive bidding, despite their limited capacity and without independent price discovery. Several infrastructure projects, including the NIH underpass in Islamabad, have faced delays under such arrangements.
A finance ministry official said the PM's Office has endorsed the draft rules, which are now with the Cabinet Committee on Legislative Cases (CCLC) awaiting cabinet approval. Revising these rules in line with IMF requirements would mark a significant shift from the existing practice of awarding multi-billion-rupee contracts without open competition.
Another IMF condition required an assessment of systemic strengths and weaknesses in the judicial system, particularly in economic dispute resolution. Officials said this had been partially met, with reviews of relevant laws, policies and reports still underway.
Similarly, a working group tasked with examining the causes of litigation delays and case backlogs has only partially completed its work.
ghazi52
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Finance minister kicks off talks with visiting IMF mission
Khaleeq KianiSeptember 29, 2026
Minister for Finance and Revenue Muhammad Aurangzeb holds a kick-off meeting with a visiting staff mission of the International Monetary Fund, on Sept 29, 2026. — X/Financegovpk
ISLAMABAD: Minister for Finance and Revenue Muhammad Aurangzeb held a kick-off meeting on Tuesday with a visiting staff mission of the International Monetary Fund (IMF).
The IMF mission, led by Iva Petrova, is in Islamabad for the fourth review of Pakistan’s $7 billion Extended Fund Facility (EFF) arrangement and the third review of the $1.4bn Resilience and Sustainability Facility (RSF).
Aurangzeb, in a virtual meeting, briefed the IMF team on the latest macroeconomic indicators, improvements in credit rating and overall investment climate amid a challenging outlook emanating from prolonged Iran conflict.
On the successful conclusion of talks, Pakistan will be entitled to disbursement of about $1.2bn under the two programmes: $1bn under the EFF and $200 million under the RSF by the end of October or early November, but may require waivers from the IMF’s executive board for slippages on structural benchmarks.
ghazi52
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The authorities are in continuous breach of structural benchmarks regarding the sovereign wealth fund (SWF) law that was originally missed in March.
The federal government already notified new procurement rules on Monday, two days ahead of the deadline, ie, Sept 30.
The SWF law is part of the discussions with the visiting IMF team. Authorities are in breach of an end-March 2026 structural benchmark on amendments to the Sovereign Wealth Fund Act to adopt governance mechanisms and safeguards for seven state-owned enterprises (SOEs), involving an asset portfolio of about $8bn.
Most of them are blue-chip entities listed on the stock exchange but remain outside normal reporting requirements. They include OGDCL, Pakistan Petroleum Limited (PPL), Mari Petroleum, National Bank of Pakistan (NBP), Govt Holdings, Pakistan Development Fund, and the Neelum-Jhelum Hydropower project. The amendments are pending parliamentary approval.
The IMF team has been in Pakistan since Sept 23. It spent the initial days in Karachi for engagements with the State Bank of Pakistan (SBP) and other stakeholders.
The staff mission has so far held engagements with officials from SBP, the finance ministry, the Federal Board of Revenue (FBR), the Establishment Division, and the finance secretaries of Khyber Pakhtunkhwa and Punjab.
The federal government already notified new procurement rules on Monday, two days ahead of the deadline, ie, Sept 30.
The SWF law is part of the discussions with the visiting IMF team. Authorities are in breach of an end-March 2026 structural benchmark on amendments to the Sovereign Wealth Fund Act to adopt governance mechanisms and safeguards for seven state-owned enterprises (SOEs), involving an asset portfolio of about $8bn.
Most of them are blue-chip entities listed on the stock exchange but remain outside normal reporting requirements. They include OGDCL, Pakistan Petroleum Limited (PPL), Mari Petroleum, National Bank of Pakistan (NBP), Govt Holdings, Pakistan Development Fund, and the Neelum-Jhelum Hydropower project. The amendments are pending parliamentary approval.
The IMF team has been in Pakistan since Sept 23. It spent the initial days in Karachi for engagements with the State Bank of Pakistan (SBP) and other stakeholders.
The staff mission has so far held engagements with officials from SBP, the finance ministry, the Federal Board of Revenue (FBR), the Establishment Division, and the finance secretaries of Khyber Pakhtunkhwa and Punjab.
