IMF Ends Key Pakistan Visit, Flags Serious Flaws in Governance

The International Monetary Fund (IMF) has found serious flaws in Pakistan’s governance, including political interference in civil service, weak institutional accountability, and fragmented decision-making, all contributing to high corruption risks. The findings follow a 12-day visit by the IMF legal mission, led by Joel Turkewitz, which consulted around 30 departments to finalise its Governance and Corruption Diagnostic Assessment report. The final report is expected by August, reported Express Tribune. The IMF told authorities that civil service positions and appointments of heads and boards of state-owned enterprises are largely politically driven. The mission also found no uniform national anti-corruption policy. Institutions such as NAB, FIA, and provincial departments act independently with little coordination. NAB’s effectiveness has weakened following legal amendments aimed at addressing past political misuse. The Right to Information Act is applied inconsistently and compromises transparency. The IMF noted that PPRA procurement rules are frequently bypassed and recommended legal changes to close gaps and remove unjustified exemptions. Additionally, organisational accountability was marked as weak. The Auditor General of Pakistan and the Competition Commission were highlighted for failing to enforce proper oversight. The IMF flagged the CCP’s continued engagement with the Pakistan Sugar Mills Association in pricing decisions. The IMF also criticised slow judicial processes and the resulting backlog of court cases, which weaken enforcement and accountability. It found that key policy decisions are often made using unverified information and that overlapping mandates among agencies lead to poor outcomes. Short-term goals are prioritised over long-term reforms. The IMF has shared its initial assessment with Pakistani officials. The full report will include recommendations for reducing corruption and improving transparency.