The International Monetary Fund (IMF) has identified nine significant weaknesses in Pakistan’s public financial management system, urging the government to ensure stricter monitoring of the budget to maintain fiscal discipline. According to the report, Pakistan’s public investment framework is riddled with structural flaws, with limited multi-year budgeting creating greater risks of corruption.
The IMF report also expressed concern over repeated delays and cost overruns in development projects. It highlighted that several schemes were added to the Public Sector Development Programme (PSDP) due to political pressure, bypassing the established procedures.
Sources revealed that the IMF’s “Corruption and Diagnostic Assessment Report” is expected to be released soon. In the meantime, the Pakistani government has informed the Fund that steps have already been taken to improve governance and curb corruption. These include the establishment of the Financial Monitoring Unit (FMU), mandatory asset declarations for civil servants and bureaucrats, reforms to improve tax revenue, and measures to enhance transparency.
Officials further noted that priority is being given to the completion of foreign-funded and ongoing development projects. They confirmed that 344 slow-moving schemes worth Rs. 2.518 trillion have been scrapped, while digital transformation has been introduced to bring greater transparency to high-risk projects.
The Ministry of Planning has also rolled out an “Intelligent Project Automation System” to better monitor and manage development programs. However, the IMF pointed out that Pakistan has yet to clearly define the priorities for its development projects. Ministries, including Finance, Planning, and the Federal Board of Revenue (FBR), have already briefed the IMF on the progress, while further discussions on the draft report are expected during the IMF mission’s upcoming visit to Pakistan.
