Pakistan vows to plug IMF-flagged governance gaps

Finance Minister Mohammad Aurangzeb said Pakistan will swiftly address weaknesses flagged by the International Monetary Fund’s recent Governance and Corruption Diagnostic Assessment, calling the listed actions necessary to keep the lending programme on track. He added that forthcoming IMF board decisions would shape the way forward and expressed confidence a deal could be reached.

The IMF assessment warns that persistent corruption and frail institutions are hobbling development, with influence wielded by “privileged entities” distorting markets and public policy. It notes that citizens often resort to informal payments for basic services, eroding trust and diverting resources from growth.

The report also highlights a cumbersome judicial system — from backlogged courts to outdated laws — that undermines contract enforcement and property rights. That climate, it says, dampens private investment and discourages reliance on legal remedies.

To counter the risks, the Fund urges immediate steps within a broader 15-point agenda: end special procurement privileges, shift government purchasing to e-governance within a year, tighten parliamentary oversight of fiscal powers, and expand public access to fiscal information. According to Aurangzeb, the government intends to move on these recommendations to strengthen governance and support private-sector-led growth.