IMF Unhappy With Inadequate Property Rights Protection in Pakistan

The International Monetary Fund (IMF) directly raised concerns over weak contract enforcement and inadequate property rights protection in Pakistan, warning that these issues deter foreign investment. The matter was discussed during a meeting held in Islamabad with Mian Muhammad Rauf Atta, President of the Supreme Court Bar Association of Pakistan (SCBAP). Also in attendance were Mir Atta Ullah Langove and Barrister Sarfraz Metlo, Presidents of the High Court Bar Associations of Balochistan and Sindh, respectively. The IMF mission engaged in an over an hour-long discussion focused on judicial efficiency, investor protection, and the need for stronger legal mechanisms. President SCBAP acknowledged the IMF’s concerns and described judicial efficiency as a fundamental requirement for a functional and independent judicial system. He briefed the delegation on key reforms currently underway, both judicial and legislative. Judicially, he highlighted efforts led by the Chief Justice of Pakistan to modernize court procedures, including the rollout of an e-filing system, improvements to case management, accelerated disposal of pending cases, and the introduction of video link facilities in the Supreme Court. These initiatives are being expanded to the high courts and subordinate judiciary. On the legislative side, the President pointed to the 26th Constitutional Amendment, which aims to strengthen judicial independence. A constitutional bench has been formed to deal with complex constitutional and political cases, ensuring that routine judicial work proceeds without interruption. Additionally, a performance review system for judges is operational. To further address systemic delays, he noted the appointment of more expert judges in the Supreme Court and high courts, the formation of specialized tribunals—especially in tax-related matters—and the promotion of Alternate Dispute Resolution (ADR) mechanisms for faster resolution at the grassroots level. Responding to concerns on contract enforcement, the SCBAP President admitted procedural delays but emphasized that specialized benches and courts are being established to improve adjudication in investment-related cases. Regarding property rights, he underscored that Articles 23 and 24 of the Constitution guarantee ownership rights and that anti-encroachment laws and enforcement mechanisms are being reinforced. The meeting concluded with both sides agreeing that economic and political stability, along with rule of law and good governance, are essential to resolving these structural challenges. The IMF mission will share a follow-up questionnaire, to which SCBAP will respond with detailed input and reform proposals.