IMF Urges Pakistan to Tighten Anti-Corruption Measures Amid Governance Concerns

Islamabad— The International Monetary Fund (IMF) has called on Pakistan to take stronger action against corruption and the misuse of public office, warning that existing mechanisms to identify politically exposed individuals remain inconsistent and inadequate.

In its initial draft of the Corruption Diagnostic Assessment Mission report, the IMF has urged the government to implement sweeping reforms before the final version is released later this month. The report, prepared under Pakistan’s $7 billion loan program, follows meetings between IMF officials and representatives from 36 government and state institutions.

Originally scheduled for release in July, the report’s publication was delayed until August at Pakistan’s request.

Major Gaps Identified

According to sources familiar with the draft, the IMF’s assessment highlights significant shortcomings in Pakistan’s anti-corruption framework, particularly in the area of government contracts. Among the key concerns raised:

• Inadequate access to comprehensive data on politically influential individuals

• Absence of automated screening tools in smaller public institutions

• Lack of effective mechanisms to flag abuse of public office

The report underscores that these weaknesses are hampering efforts to ensure transparency and accountability in public administration.

Progress Acknowledged

Despite its concerns, the IMF has acknowledged efforts by several key regulatory bodies. The State Bank of Pakistan, the Securities and Exchange Commission of Pakistan (SECP), and the Federal Board of Revenue (FBR) were commended for making strides in addressing corruption within their respective domains.

Recommendations for Reform

To address systemic issues, the IMF has recommended that Pakistan:

• Study international best practices in anti-corruption enforcement

• Improve inter-agency data sharing and access to politically exposed persons’ (PEP) databases

• Deploy automated monitoring and screening tools across all public institutions

• Issue new regulatory guidelines to ensure consistent enforcement

The IMF stressed that enhancing transparency and accountability will be key to restoring public confidence and ensuring effective use of state resources.

As the final report nears publication, the onus is now on Islamabad to demonstrate its commitment to structural reforms and good governance—a key condition for continued financial support from the global lender.

Read more: Pakistan’s Fiscal Deficit shrinks to Rs7 Trillion in FY24 amid IMF