The International Monetary Fund (IMF) has raised concerns over Pakistan’s public financial management, pointing out nine major shortcomings that continue to undermine fiscal discipline.
According to the IMF’s Corruption and Diagnostic Assessment Report, Pakistan’s budgetary system suffers from weak monitoring, poor project planning, and governance gaps. It warned that politically motivated projects are being included in the Public Sector Development Programme (PSDP) without proper evaluation, delaying implementation and inflating costs.
The report also flagged serious issues in multi-year budgeting, stating that weak oversight creates room for corruption and financial mismanagement.
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In response, the government assured the IMF that reforms are underway to address these weaknesses. Officials highlighted the establishment of a Financial Monitoring Unit, mandatory asset declarations for civil officers, and the closure of 344 non-performing projects worth Rs2.5 billion. Efforts such as digital transformation and project automation systems in the Planning Ministry are also being introduced.
The IMF, while welcoming these steps, stressed that consistent monitoring and enforcement will be essential for sustainable improvement. It urged Pakistan to prioritize high-impact projects, restructure its investment framework, and strengthen accountability mechanisms.