IMF Urges Pakistan: Tackle Corruption to Secure Economic Stability

The IMF has urged Pakistan to take immediate action against corruption and political harassment, as corruption hinders reform efforts. Pakistan's USD 7 billion EFF agreement focuses on economic stability, requiring strengthened investigators, digitalized asset declarations, and enhanced government-owned business reforms to drive growth.

The International Monetary Fund (IMF) has issued a stern warning to Pakistan, urging swift measures to combat corruption and political harassment that are derailing anti-corruption cases across the nation, according to a recent ARY News report.

On September 25, the IMF's Executive Board approved a 37-month Extended Fund Facility (EFF) agreement worth approximately USD 7 billion, with core policies emphasizing sustainable finances, reduced inflation, and better external buffers to foster economic growth and stability in Pakistan. The IMF insists on strengthening the National Accountability Bureau (NAB) to ensure it aligns with top court rulings and to develop an actionable plan to eradicate corruption by June 2025.

Further, the IMF has underscored the necessity for the Federal Board of Revenue (FBR) to become digitalized to ensure transparency in asset declarations by government officials, including parliamentarians. The absence of accurate data is hindering NAB's corruption investigations, a situation the IMF finds critical to address.

The IMF's call for reform coincides with the announcement of Pakistan's new borrowing requirements. The lender has urged the Pakistani government to stabilize the macroeconomic environment through substantial reforms, particularly in government-owned businesses, and to create favorable conditions for private sector economic growth.

Looking ahead, Pakistan's GDP is projected to hover between 4% and 4.5% from FY2024-2025 to FY2029-2030, while inflation is anticipated to range between 6.6% and 9%. The IMF stresses the urgency of implementing economic reform strategies to actualize these projections.

(With inputs from agencies.)