Pakistan fails to publish IMF-recommended governance and corruption report

Islamabad, Sep 16 (PTI) Pakistan has failed to publish on time a key report outlining measures suggested by the International Monetary Fund to strengthen judicial integrity, tackle conflicts of interest, and enhance performance and service delivery, according to a media report on Tuesday.

Finance Minister Muhammad Aurangzeb on Monday chaired a meeting to review progress on the implementation of IMF conditions before the second review talks begin on September 25.

The briefing to the finance minister showed the federal government had met most conditions related to fiscal matters, but key commitments on governance in state-owned enterprises (SOEs) and state institutions were still pending, The Express Tribune newspaper reported, quoting sources.

The ministry also failed to publish the Governance and Corruption Diagnostic report by July-end and amend 10 laws governing state-owned companies by June 2025 as recommended by the global lender, it said.

The finance ministry's spokesperson did not respond to queries about missing the condition of publishing the report.

The global lender had advised the federal cabinet, the Supreme Judicial Council and the provincial high courts, through their respective governments, to publish yearly reports. These reports should list steps taken to strengthen judicial integrity, including statistics on complaints received, the disposition of complaints and actions taken.

Since the report remains unpublished, another IMF condition is now at risk.

The government was required to release a governance action plan based on the report's recommendations by October 2025. Government officials said this deadline is also likely to be missed.

The IMF set around 50 conditions under the $7 billion bailout package. Some are monitored quarterly, others annually, with tranche approvals linked to compliance.

To strengthen judicial integrity, the IMF had advised Pakistan to "strengthen integrity and conflict of interest provisions for all judicial personnel and review and increase transparency around payments and grants to judicial personnel".

For judicial efficiency, the IMF proposed preparing "a multi-year judicial reform strategy to strengthen institutional performance and judicial service delivery in Pakistan".

The IMF further recommended that the Judicial Commission of Pakistan create standardised principles for judicial appointments and tenure. These principles should apply to judges and tribunal members, particularly those dealing with commercial disputes. Demonstrable compliance was required for all appointments.

Another proposal asked Pakistan to establish a methodology to assess courts and judges' performance under the Ministry of Law. The results of such monitoring should be published on official websites, particularly for tribunals and courts handling commercial cases.

The IMF also recommended that the federal cabinet expand and institutionalise alternate dispute resolution by operationalising dispute resolution centres and enacting arbitration laws.

It called for the creation of a task force to propose reforms for efficient contract enforcement, in line with international best practices. Additional recommendations included drafting a plan to reduce case backlogs and updating laws on contracts and property rights.

Beyond governance, the government also breached an IMF condition by granting tax exemptions. It waived duties on sugar imports, in violation of the agreement.

Provincial governments missed their target of generating Rs 1.2 trillion in cash surpluses.

The Federal Board of Revenue (FBR) also failed to meet two key commitments. Against the PKR 12.3 trillion target for the last fiscal year, it collected PKR 11.74 trillion. The board also missed its PKR 50 billion target from retailers under the Tajir Dost Scheme. It failed to collect any significant revenue under the scheme. PTI SH SCY SCY