The International Monetary Fund (IMF) has expressed appreciation for Pakistan’s commitment to governance and corruption assessments following a recent visit to the country. The IMF’s technical mission, which took place earlier this month, was focused on evaluating Pakistan’s judicial and regulatory systems as part of the ongoing $7 billion Extended Fund Facility (EFF) aimed at addressing governance and corruption vulnerabilities.
During the visit, the IMF delegation, led by Joel Turkewitz, engaged in discussions with Chief Justice of Pakistan, Yahya Afridi, regarding judicial performance, governance, and ongoing reforms.
In a statement released on its website, the IMF highlighted the purpose of its visit, noting that the mission was in Pakistan from February 6 to 14 to lay the foundation for a Governance and Corruption Diagnostic Assessment (GCD) at the request of the Pakistani government. The IMF expressed its appreciation for Pakistan’s commitment to this exercise and affirmed its anticipation for continued collaboration.
The IMF also announced that the scoping team for the GCD assessment would return to Pakistan later this year to continue gathering information and explore opportunities to strengthen governance, integrity, and economic outcomes in preparation for the final assessment.
Focus Areas of the IMF Mission
The primary objective of the IMF mission was to assess governance and corruption vulnerabilities across six core state functions, which include:
- Fiscal governance
- Central bank governance and operations
- Financial sector oversight
- Market regulation
- Rule of law
- Anti-money laundering and countering the financing of terrorism (AML-CFT)
Throughout its visit, the IMF team held engagements with several key institutions, including the Finance Division, the Federal Board of Revenue, the State Bank of Pakistan, the Auditor General of Pakistan, the Securities & Exchange Commission of Pakistan, the Ministry of Law & Justice, and the Supreme Court. The delegation also met with various stakeholders, including business associations, civil society organizations, and international development partners.
Future IMF Missions and Support for Pakistan
Pakistan is expecting additional policy-level IMF missions in the coming weeks to discuss over $1 billion in additional financing for climate resilience and the ongoing review of the $7 billion loan program.
In October of the previous year, Pakistan made a formal request for about $1 billion in funding from the IMF under the Resilience and Sustainability Trust (RSF) to address the country’s vulnerability to climate change. The IMF confirmed that a team is scheduled to visit Pakistan in early to mid-March for discussions concerning the first review of the Extended Fund Facility and Pakistan’s request for support under the RSF arrangement.
Mahir Binici, the IMF’s resident representative in Islamabad, confirmed the details in a statement, noting that the technical team would arrive in late February to address technical issues related to a possible RSF arrangement. The RSF provides funding to nations that commit to high-quality reforms aimed at enhancing resilience against climate catastrophes. It is offered on more favorable terms than typical loan programs like the EFF, with repayment spread over 30 years, including a 10-year grace period.
Through these discussions and ongoing assessments, the IMF aims to support Pakistan in its efforts to strengthen governance, tackle corruption, and build resilience against climate-related challenges, ultimately helping the country achieve more stable and sustainable economic growth.
