Pakistan’s $7 billion International Monetary Fund (IMF) bailout program remained on track despite delays in reforms tied to the country’s planned sovereign wealth fund, according to the lender’s latest review released this month, which described the missed benchmark as the result of extended technical consultations. The reforms relate to the Pakistan Sovereign Wealth Fund (PSWF), a state-owned investment vehicle Islamabad hopes will help attract foreign investment and improve the management of some of the country’s largest public-sector companies. The IMF, however, has pushed Pakistan to narrow the fund’s powers and strengthen governance safeguards before it becomes operational. Pakistan enacted the sovereign wealth fund law in 2023 as part of plans to consolidate state assets into a professionally managed holding structure modeled loosely on sovereign investment vehicles used by Gulf states and other countries. The fund was initially designed to hold stakes in several profitable state-owned enterprises and potentially raise financing through international partnerships. “Five of six structural benchmarks were met, covering tax administration, governance, social support, energy sector sustainability, and investment zone reform,” the IMF said in its latest country report.
IMF keeps Pakistan bailout on track
Published on: May 21, 2026 7:40 AM