Islamabad, February 9, 2025 – The International Monetary Fund (IMF) mission has arrived in Pakistan to assess the extent of corruption vulnerabilities across six key state functions, according to a statement released by the finance ministry on Sunday.
These areas of focus include fiscal governance, central bank governance and operations, financial sector oversight, market regulation, rule of law, and AML-CFT (Anti-Money Laundering and Countering Financing of Terrorism).
The IMF mission is primarily engaging with various governmental organizations, including the Finance Division, Federal Board of Revenue, State Bank of Pakistan, Auditor General of Pakistan, Securities & Exchange Commission of Pakistan, Election Commission of Pakistan, and the Ministry of Law & Justice. The mission aims to conduct a thorough Governance and Corruption Diagnostic Assessment (GCDA), which will offer recommendations to address corruption vulnerabilities and enhance governance integrity.
This evaluation aligns with Pakistan’s commitment to transparency, institutional strengthening, and inclusive economic growth. The Government of Pakistan acknowledges the technical assistance provided by the IMF in this endeavor. This press release also aims to clarify circulating media reports regarding the IMF’s engagement in conducting this governance review.
The International Monetary Fund has consistently played a pivotal role in providing advisory services and technical support to countries striving for economic stability. The IMF has historically concentrated on correcting macroeconomic imbalances, reducing inflation, and facilitating market reforms to enhance efficiency and drive sustainable growth. However, the IMF now recognizes that broader institutional reforms, particularly in governance, are essential to fostering private sector confidence and long-term economic stability.
The IMF has identified that promoting good governance, reinforcing the rule of law, increasing the accountability of public institutions, and tackling corruption are critical to a thriving economy. In 1997, the IMF introduced governance-focused policies in its “Guidance Note: The Role of the IMF in Governance Issues.” This policy was further strengthened in 2018 with the introduction of the “Framework for Enhanced Engagement on Governance,” which ensures a systematic and transparent approach to tackling governance weaknesses, including corruption.
Under this framework, the IMF collaborates with member countries to conduct Governance and Corruption Diagnostic Assessments (GCDA), which analyze governance challenges and recommend necessary reforms. Since 2018, twenty GCDA reports have been completed for countries such as Sri Lanka, Mauritania, Cameroon, Zambia, and Benin. Ten additional assessments are currently in progress, with several more under consideration by the IMF.
As part of the Extended Fund Facility (EFF) 2024 program, Pakistan has committed to undertaking a GCDA with IMF capacity development support. This assessment will identify critical governance and corruption vulnerabilities and outline structural reforms to enhance governance standards. The final GCDA report will be made publicly available. In line with this commitment, a three-member IMF mission is currently in Pakistan to conduct the assessment and provide expert recommendations for strengthening governance and integrity in the country.
