IMF Seeks 174 Legal Amendments as Pakistan Prepares Reforms

ISLAMABAD: The International Monetary Fund has sought about 174 amendments to Pakistani laws as part of reforms linked to the country's ongoing financial programmes, according to a briefing given to the National Assembly Standing Committee on Finance and Revenue. Finance Secretary Imdad Ullah Bosal told lawmakers that the government was working on the proposed changes and would place them before Parliament for approval.

Bosal said three programme reviews had already been completed and Pakistan had received $4.1 billion so far. He told the committee that tax concessions had been withdrawn and restrictions imposed on supplementary grants in line with programme commitments. However, he acknowledged that significant progress had not been achieved on some targets related to circular debt in the energy sector, while education-spending targets had also not been met.

The proposed legislative changes cover a broad range of economic and governance areas. These include financial-sector governance, state-owned enterprises, foreign remittances, climate-related measures, local-currency integration and subsidy mechanisms. Changes to the Sovereign Wealth Fund framework are also under discussion, including provisions related to joint investment and governance standards for state-owned assets held through the fund.

Remittances are another area under review because of their importance to Pakistan's external financing position. Officials told the parliamentary panel that costly payment-system barriers need to be addressed. Subsidies previously used to facilitate remittance flows, which had exceeded Rs120 billion, have already been withdrawn after objections were raised during programme discussions. Changes to sugar-sector policy are also among the reform benchmarks, with a liberalisation proposal under consideration by provincial governments.

The committee also examined the disclosure of assets held by government officials. Bosal said the Federal Board of Revenue would provide certain information to the Establishment Division and that unusual asset holdings could lead to disciplinary proceedings. Lawmakers Hina Rabbani Khar and Naveed Qamar questioned why officials would face only partial disclosure requirements while parliamentarians are required to declare their assets, and sought further explanation of security concerns cited for limiting public disclosure.

The disclosure comes shortly before another round of formal programme negotiations. A visiting IMF mission is expected to begin discussions on September 28 for the fourth review of the $7 billion Extended Fund Facility and the third review of the Resilience and Sustainability Facility. Together, the two arrangements are worth about $8.4 billion. IMF Managing Director Kristalina Georgieva also met Prime Minister Shehbaz Sharif on the sidelines of the United Nations General Assembly this week and acknowledged progress under the economic programme.

The next stage will move much of the reform debate into Parliament, where the proposed amendments will require legislative consideration rather than taking effect automatically. The changes could influence the governance of state enterprises, subsidy arrangements, financial reporting and other areas of economic management. Parliamentary scrutiny and the upcoming programme review will determine which proposals advance, how they are structured and whether further revisions are required before implementation.