IMF Team in Pakistan Concludes Governance and Corruption Diagnostic Assessment

A second phase of the review commenced on April 4, 2025.

By DTD- On Apr 14, 2025

ISLAMABAD: (Muddassar Iqbal/Web Desk)- An International Monetary Fund (IMF) team, which has been in Pakistan since early April for a Governance and Corruption Diagnostic Assessment (GCDA), is set to conclude its mission today, Monday. The assessment is part of the IMF’s ongoing engagement with Pakistan, following the staff-level agreement for a new $1.3 billion climate resilience loan program.

The mission also involves the first review of Pakistan’s 37-month, $7 billion bailout package, which, pending board approval, would release $1.3 billion from the new arrangement. Additionally, $1 billion is set to be disbursed under the existing bailout, bringing the total IMF disbursements to $2 billion.

The GCDA is a critical evaluation tool used by the IMF to assess weaknesses in governance, with a focus on fiscal management, financial oversight, and the rule of law. The goal of the assessment is to provide recommendations for governance reforms that promote transparency, accountability, and improved institutional performance.

The preliminary phase of the GCDA took place in February 2025, following a request from the Pakistani government, with the IMF noting Pakistan’s commitment to governance reforms. A second phase of the review commenced on April 4, 2025.

In related developments, a technical IMF team is expected to arrive in Pakistan this week for discussions with senior officials from the Federal Board of Revenue (FBR). The talks will center around taxation measures for the 2025–26 budget, with a particular focus on expanding the country’s tax base, including retailers and untaxed sectors.

A key issue expected to be discussed is the government’s proposal to lower tax rates for salaried individuals, a measure that the IMF will review as part of broader fiscal discussions.

Meanwhile, Finance Minister Mohammad Aurangzeb will lead a high-level Pakistani delegation to the IMF and World Bank’s annual spring meetings in Washington from April 21 to 26, where further discussions on fiscal policies and economic reforms are anticipated.