IMF team arrives in Pakistan for second phase of anti-corruption and governance review

Arab News

10-04-2025

KARACHI: An International Monetary Fund (IMF) team has arrived in Pakistan to carry out the second phase of its Governance and Corruption Diagnostic Assessment (GCDA), part of the country's $7 billion loan program, the finance ministry confirmed on Friday.
The GCDA is a detailed assessment tool used by the global lending agency to identify governance vulnerabilities in areas such as fiscal management, financial oversight and the rule of law. It is designed to support targeted reforms to improve transparency, accountability and institutional performance.
The IMF conducted the preliminary phase of the assessment in February at the request of the Pakistani government. Following the visit, it praised the country's commitment to governance reform.
'Yes,' a ministry official said in a brief response on condition of anonymity, as he was not authorized to speak to the media about the issue, when asked if the IMF team had arrived in the country.
Another ministry official corroborated the arrival of the IMF team, saying it was the continuation of its first trip to Pakistan in February.
The three-member IMF team that visited Islamabad earlier had initiated its evaluation of corruption vulnerabilities across six core state functions in Pakistan.
That visit coincided with a separate IMF mission reviewing Pakistan's economic performance under the Extended Fund Facility (EFF), which later led to a staff-level agreement expected to unlock a $1 billion disbursement.
Pakistan, a regular borrower of IMF funding, is undergoing the GCDA to identify priority structural reforms required under the EFF to help revive its fragile economy.
During the February visit, the IMF GCDA delegation met with Chief Justice of Pakistan Yahya Afridi to discuss the functioning of the judiciary.
In this second round, the IMF team is expected to engage with officials from the finance division, central bank, tax authority as well as institutions such as the Securities and Exchange Commission of Pakistan, Auditor General of Pakistan, Election Commission and the law ministry.
After completing its review, the IMF team will file a report and recommend steps for addressing corruption vulnerabilities and strengthening integrity and governance.
Its findings are expected to assist the Pakistani government in implementing reforms aimed at enhancing transparency, building institutional capacity and achieving inclusive and sustainable growth.
Pakistan aims to expand its economy by 3.6 percent in the current fiscal year ending in June, in a bid to generate jobs for its large youth population.
The country, home to over 240 million people, has faced a significant brain drain amid economic instability and limited employment opportunities.
The finance ministry officials denied local media reports suggesting that the visiting IMF team would provide input in the government's ongoing budget formulation process.