Government Set to Release Critical Governance Report Ahead of IMF Meeting
The Governance and Corruption Diagnostic Assessment report, a pivotal document for Pakistan, is slated for release by the government ahead of the International Monetary Fund’s (IMF) executive board meeting. This release holds significant weight as the board is expected to consider a $1.2 billion disbursement for Pakistan under its Extended Fund Facility (EFF).
Publication of the IMF-prepared Governance and Corruption Diagnostic Assessment is a key structural benchmark within the $7 billion EFF program. It is to be followed by a comprehensive action plan designed to address identified governance weaknesses across both federal and provincial tiers.
Addressing Governance Weaknesses
Initially, the deadline for this assessment was set for end-July, subsequently pushed to end-August, and then end-October 2025. Delays primarily stemmed from technical and factual disagreements between Pakistani authorities and the IMF team. “We have reaffirmed the structural benchmark,” an official stated, confirming a mutual understanding with the IMF to publish the report before the upcoming board meeting, scheduled for later this month or early next.
This Governance and Corruption Diagnostic Assessment involved a comprehensive exercise, conducted by technical and legal teams from the IMF in collaboration with global organizations like the Organisation for Economic Co-operation and Development (OECD) and the Financial Action Task Force (FATF). Drafts were exchanged extensively with Pakistani counterparts including anti-corruption bodies, the judiciary, and various ministries.
Serious disagreements regarding the interpretation of rules within local and international contexts have reportedly been resolved. A final draft has been shared with IMF headquarters in Washington for review prior to its official publication. The expedited release of the Governance and Corruption Diagnostic Assessment and its subsequent action plan aims to quickly address critical vulnerabilities. SindhNews.com has been closely monitoring these developments.
Earlier, a three-month gap was planned between the report’s release and the action plan’s rollout. This gap is now expected to be reduced, with the action plan potentially rolling out before December, subject to the next biannual review.
The diagnostic exercise by an IMF scoping mission earlier this year identified gaps in public finance management, the Federal Board of Revenue’s (FBR) tax system, and institutional mechanisms for accountability. A significant area of concern remains uneven implementation regarding asset declarations by public servants, especially for beneficial ownership.
Numerous institutions, including regulatory bodies, currently enjoy exemptions from scrutiny and disclosure requirements. This contributes to widespread perceptions of corruption, with Pakistan consistently ranking high on international corruption perception indices. The IMF has consistently advocated for data-driven safeguards against corruption and the misuse of public office.
On October 14, Pakistan and the IMF reached a staff-level agreement on the second review of the $7 billion bailout package and the first review of the $1.4 billion Resilience and Sustainability Fund (RSF). Following IMF executive board approval, Pakistan is poised to receive a $1 billion disbursement under the EFF and $200 million under the RSF. While the exact date for the board meeting remains unannounced, authorities anticipate it will be convened after November 15. The release of this crucial report is a prerequisite for these disbursements, signaling Pakistan’s commitment to transparency and robust governance reforms.
Summary: Pakistan’s government will release its long-delayed Governance and Corruption Diagnostic Assessment report before a crucial IMF board meeting. This structural benchmark, vital for a $1.2 billion disbursement, aims to address deep-seated governance and corruption issues, streamlining reforms and ensuring continued international financial support.