International Monetary Fund has asked Pakistan to impose six strict conditions on its sovereign wealth fund. The move aims to fully regulate the fund’s operations under legal and financial discipline. The decision directly affects government financial planning and state investment structures.
According to officials, the IMF conditions place major restrictions on the wealth fund’s financial activities. The fund will not be allowed to take loans or provide guarantees under any circumstances. It will also be barred from lending to public or private entities.
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In addition, the IMF has restricted the fund from participating in public-private partnership projects. It will also be prohibited from acquiring financial assets or instruments in any form. Furthermore, the fund cannot seek financial support from the central bank or government institutions.
Sources said the restrictions are part of broader efforts to align Pakistan’s state-owned enterprises with IMF standards. The proposed changes are linked to structural benchmarks under the upcoming budget cycle. Authorities aim to ensure transparency and reduce financial risks in public funds.
Read more: IMF sets strict conditions for sovereign wealth fund
Meanwhile, the government has already sent six amendments related to state-owned enterprise laws to parliament for approval. These changes aim to align the legal framework with the State-Owned Enterprises Act. Officials say the reforms will strengthen governance and financial control over public assets.