Daily Times

The International Monetary Fund (IMF) has applauded Pakistan’s commitment to conducting external governance and corruption evaluation to strengthen its systems, according to a statement this week, adding its assessment team, which recently concluded its visit to the country, will return later this year.

A three-member IMF mission carried out the Governance and Corruption Diagnostic Assessment (GCD) in Pakistan from February 6 to 14 under the $7 billion loan program secured in September 2024.

According to Pakistan’s finance ministry, it will prepare a report recommending actions to address corruption vulnerabilities and strengthen integrity and governance, adding that its findings will help shape structural reforms.

The IMF said the team had done the “groundwork” for the assessment at the request of Pakistani authorities, surveying several critical areas.

“The IMF appreciates the commitment of the Government of Pakistan to this exercise and looks forward to continuing our collaboration,” the international lending agency said on its website in a statement prepared on February 18.

“The IMF team for the GCD assessment will return to Pakistan later this year to continue gathering information and exploring opportunities to strengthen governance, integrity, and economic outcomes in preparation for the eventual assessment,” it added.

The statement said the visiting team’s focus was to preliminarily assess governance and corruption vulnerabilities across six core state functions, including fiscal and central bank governance and operations, financial sector oversight, market regulation, rule of law and anti-money laundering and countering the financing of terrorism (AML-CFT).

During its mission, the IMF team engaged with the Finance Division, Federal Board of Revenue, State Bank of Pakistan, Auditor General of Pakistan, Securities and Exchange Commission, Ministry of Law and Justice and the Supreme Court of Pakistan.

Additionally, its members met with a range of other stakeholders, including business associations, civil society organizations and international development partners.

Separately, Finance Minister Muhammad Aurangzeb said on Saturday that the government’s move to expand the tax base reduced the burden on the national treasury.

Speaking in Faisalabad, the finance czar affirmed that Pakistan’s economy is moving towards improvement, driven by key reforms.

Aurangzeb emphasised that a lower policy rate has also benefited business owners and ongoing economic stability measures were yielding positive results. He also reiterated that inflation has decreased to single digits, providing relief to the public.

The finance minister highlighted that recent tax reforms had significantly increased revenue collection. Addressing concerns about seeking assistance from the International Monetary Fund (IMF), he noted that sustainable governance cannot rely solely on charity, stressing the importance of a strong economic framework.

Aurangzeb further underscored the need for public-private sector collaboration to drive economic growth, stating that working together is crucial for long-term progress.