Latest news with #GovernanceandCorruptionDiagnosticAssessment
Express Tribune
14-04-2025
- Business
- Express Tribune
IMF concludes Pak visit, set to propose transparency reforms
The International Monetary Fund (IMF) has identified key shortcomings in Pakistan's governance, including the politicisation of the civil service, weak organisational accountability, and excessive focus on short-term goals. These issues, the IMF noted, contribute to broader governance weaknesses and increase vulnerability to corruption. The observations were made following the conclusion of a 12-day visit by the IMF's legal mission, led by Joel Turkewitz. During the visit, the mission engaged with around 30 organisations and departments as part of finalising the Governance and Corruption Diagnostic Assessment report. This was the second such visit in as many months. The report which is expected to be made public by August this year will give recommendations for ensuring greater transparency and improving the public sector delivery by minimising the chances of corruption and through merit-based decisions. The sources said that the IMF mission held the concluding meeting with the Pakistani authorities on Monday and shared its initial assessment. But the detailed report will be handed over later on. Neither the Cabinet Division nor the IMF resident representative to Pakistan responded to requests for comments. One of the main findings of the mission was that Pakistan's civil service was highly politicised, according to the sources. Not only that, the heads of the state-owned enterprises and their boards were appointed under political considerations, said the sources privy to these discussions. The Pakistan Muslim League-Nawaz (PML-N) government had changed the boards of eight out of 10 power distribution companies last year. But the boards of Hyderabad and Sukkur power distribution companies were not changed due to an understanding with the Pakistan Peoples Party (PPP). The Power Minister, Sardar Awais Legahri, now publicly criticises the performance of these two companies, which contributed to the overall power sector losses during the first half of this fiscal year. The IMF assessment of the politicisation is also in line with the prevailing situation in the bureaucracy. The key positions are said to be mostly filled with people having allegiance to the political leaderships. In addition to political patronage, the civil servants also get protections from their seniors and often serious corruption crimes remain unpunished. During its 12-day stay in Pakistan, the IMF held meetings with around 30 government departments and institutions. However, some of the planned meetings could not take place. One of the findings was that there had been no uniformed anti-corruption policy and the anti-corruption measures were mostly event or organisation based and various entities were responsible for minimising the menace. The National Accountability Bureau (NAB), the Federal Investigation Agency (FIA) and the provincial anti-corruption departments are responsible for ending corruption in the government. However, there has not been any consistent anti-corruption policy. NAB's role was weakened after amendments to the accountability law, the changes that were necessitated due to politicisation of NAB in the past. The Right to Information Act (RIA) is also selectively applied, which compromises transparency. The Public Procurement Regulatory Authority (PPRA) rules are often bended for public procurements and these rules need to be amended to end discrepancies and exemptions, said a Pakistani official who was part of these discussions. The sources said that another important area in the IMF report would be the weakness of the organisational accountability in Pakistan. They said that during its interactions with the Pakistani authorities, the IMF particularly identified the departments of the Auditor General of Pakistan (AGP) and the Competition Commission of Pakistan (CCP). The role of the office of the AGP is to ensure that the public funds are prudently spent and are not embezzled, while the CCP is mandated to ensure there is no cartelisation or monopoly and the market is functional on the basis of fair play. However, the CCP has been handing over decisions against associations like the Pakistan Sugar Mills Association (PSMA) but still the PSMA is part of every important decision on the pricing of sugar. According to the IMF's assessment, the sources said, there is also a lack of risk prioritisation among the government organisations that causes weak governance and increased corruption vulnerabilities. The sources said that the IMF also observed that judicial processes in Pakistan were lengthy and slow and as a result there was a huge backlog of court cases. While analysing the policy priorities of Pakistan, the IMF observed a number of loopholes, which led to poor decision making, said the sources. The IMF's observations were that Pakistan was more focused on achieving short-term targets, which often undermine the long-term policy objectives. One of the reasons for poor governance was that there was fragmentation of the authority and often same nature functions and roles are distributed to more than one entities, said the sources. This overlapping of jurisdiction has weakened the accountability against the poor decisions. Sometimes, the decisions are taken on the basis of unverified information, which leads to making wrong policies, said the sources. The government's footprints have expanded to many areas and in some sectors still an old licence regime and outdated regulations are in practice, said the sources. The sources said that the detailed IMF report will cover this aspect and the recommendations will be given for bringing improvements.
Arab News
14-04-2025
- Business
- Arab News
IMF mission to conclude Pakistan governance and corruption assessment today
KARACHI: An IMF team visiting Pakistan to undertake a Governance and Corruption Diagnostic Assessment (GCDA) will conclude its mission today, Monday, an official with direct knowledge of the review said. IMF staff reached a deal with Pakistan for a new $1.3 billion arrangement last month and also agreed on the first review of the ongoing 37-month bailout program. Pending board approval, Pakistan can unlock the $1.3 billion under a new climate resilience loan program spanning 28 months. The IMF will also release $1 billion for the South Asian nation under its $7 billion bailout program, which would bring those disbursements to $2 billion. 'Following a scoping mission in February, an IMF team is in Pakistan until April 14 [Monday] to undertake a Governance and Corruption Diagnostic Assessment (GCDA),' an official privy to the negotiations told Arab News, requesting anonymity as he was not authorized to speak to the media. 'A press release will be issued at the conclusion of the mission.' The IMF bailout program, secured mid-year in 2024, has played a key role in stabilizing Pakistan's economy and the government has said the country is on course for a long-term recovery. 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. A second review began on Apr. 4. A separate technical team from the IMF is also scheduled to visit Pakistan this week to hold discussions with senior officials from the Federal Board of Revenue (FBR) regarding taxation proposals for the upcoming budget of 2025-26. 'The visit … will see talks focused on expanding the country's narrow tax base, with a particular emphasis on bringing retailers and other untaxed sectors into the tax system,' Profit, a top Pakistani business publication, reported last week. 'One of the key issues on the table will be the government's desire to reduce tax rates for salaried individuals, a move the IMF will likely evaluate as part of broader fiscal discussions.' A high-powered Pakistani delegation, led by Finance Minister Mohammad Aurangzeb, will participate in the upcoming annual spring meetings of the IMF and World Bank in Washington from April 21-26.
Arab News
10-04-2025
- Business
- Arab News
IMF team arrives in Pakistan for second phase of anti-corruption and governance review
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.
Express Tribune
15-02-2025
- Business
- Express Tribune
SCBA, IMF team discuss judicial reforms
ISLAMABAD: A delegation from the IMF's Governance and Corruption Diagnostic Assessment team met with representatives of the SCBA on Friday to discuss deficiencies in the judicial system and efforts to curb corruption in government institutions. SCBAP President Mian Muhammad Rauf Atta led the association's delegation in the discussions. The IMF team is in Pakistan as part of the ongoing review of the judicial framework under the $7 billion Extended Fund Facility (EFF). The meeting lasted for over an hour and took place in a cordial and constructive atmosphere. The Pakistan Bar Council (PBC) member Hasan Raza Pasha, along with SCBA Additional Secretary Muhammad Aurangzeb Khan and Balochistan High Court Bar Association President Mir Ataullah Lango, were also present during the discussions. According to a statement issued by the SCBA, the primary focus of the meeting was curbing corruption to create an investment-friendly environment in Pakistan. The SCBA president highlighted flaws in the judicial system, including case backlog at lower and district courts and the shortage of judges. The discussion also covered inactive government departments and the potential of Alternative Dispute Resolution (ADR) mechanisms to reduce the burden on courts and improve public access to justice. The meeting further discussed strategies to combat corruption, enhance governance and implement legal reforms. The SCBA president stressed the need for strict measures against financial crimes to strengthen Pakistan's economy. Addressing concerns over judicial accountability, Mian Rauf Ata underlined that the legal system already has a mechanism for reward and punishment. He elaborated that the Supreme Judicial Council (SJC) addresses complaints against higher judiciary judges while relevant High Courts oversee district judges.
Express Tribune
12-02-2025
- Business
- Express Tribune
IMF assesses governance, corruption in public sector
ISLAMABAD: The International Monetary Fund (IMF) held meetings on Wednesday with officials from the Auditor General of Pakistan (AGP), the Federal Board of Revenue (FBR), and the Securities and Exchange Commission of Pakistan (SECP) to conduct a governance and corruption assessment. Sources revealed that the IMF mission was briefed on transparency and the audit process in the public sector. The mission was informed that Parliament serves as the highest forum for audit and accountability in the public sector. Additionally, the opposition has the authority to audit government institutions, with the head of the Public Accounts Committee being nominated by the Leader of the Opposition. FBR officials provided a briefing on digitalization and tax reforms aimed at ensuring transparency in the tax system. Meanwhile, SECP representatives apprised the IMF about measures taken to enhance the ease of doing business in the stock market and corporate sector. The IMF mission also held meetings with officials from the Ministry of Climate Change and the Ministry of Housing and Works. Notably, the IMF has been in Pakistan for about a week to conduct a comprehensive governance and corruption assessment. This includes a review of the process for appointing judges, judicial integrity, and judicial independence. This is the first detailed mission of its kindPakistan's Governance and Corruption Diagnostic Assessmentwhich began on Thursday. The assessment is set to conclude on Friday, government and diplomatic sources told The Express Tribune. During its stay in Pakistan, the IMF team is meeting with representatives from at least 19 government ministries, departments, and state institutions, including the Judicial Commission of Pakistan and the Supreme Court of Pakistan. The mission's focus remains on the rule of law, anti-corruption measures, financial oversight, eliminating deeply entrenched vested interests in the state's governance structure, and combating money laundering, according to the sources.
