The International Monetary Fund (IMF) has called for the strict implementation of Pakistan’s National Tariff Policy 2025–30, according to its Governance and Corruption Diagnostic Assessment Report. The report stressed that reforms to simplify the tariff structure must continue to strengthen economic governance.
Read More: Budget 2025-26 to kick off first phase of National Tariff Policy 2025-30
The IMF highlighted the need for the National Tariff Commission (NTC) to reduce reliance on external consultants and limit the influence of lobbying groups on its decisions. The report also emphasized enhancing the NTC’s technical capacity, institutional credibility, and transparency while curbing rent-seeking trends.
Weaknesses in customs enforcement were identified as undermining the effectiveness of tariff reforms. The IMF recommended addressing flaws in the customs system, abolishing Section 18-A of the Fifth Schedule, and restricting exemptions under Section 19 of the Customs Act. Additionally, the report called for significantly reducing discretionary tax exemptions to ensure a coherent tariff structure.
The IMF has exposed what Pakistanis already knew: corruption is bleeding this country dry.
6.5% of GDP lost
SIFC slammed for zero transparency
Elite capture crippling growth
Demand for reforms in tax, justice & procurementThe corrupt ruling group has pushed… pic.twitter.com/lQRKs1rUJZ
— PTI Canada Official (@PTIOfficialCA) November 21, 2025
In a related development, Pakistan has accepted a key IMF condition to conduct a special audit of supplementary grants issued over the past ten years, Finance Ministry sources confirmed. The IMF’s technical mission, which arrived in Pakistan on November 11, concluded its 10-day discussions last week.
Officials noted that Pakistan has also agreed to another IMF requirement aimed at limiting the federal government’s discretionary authority in issuing supplementary grants. The talks focused on reforms in public finance management (PFM) and measures to enhance transparency in the budget process.
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The IMF’s recommendations are part of a broader effort to strengthen economic governance, improve tariff management, and ensure greater accountability in Pakistan’s fiscal operations. The government is expected to take steps to implement the proposed reforms in the coming months.