IMF urges Pakistan to tackle corruption amid USD 7 billion loan agreement

Islamabad [Pakistan], October 12 : Pakistan has been cautioned by the International Monetary Fund (IMF) to take prompt actions against corruption and political harassments related to corruption cases in the country, ARY News reported on Saturday.
On September 25, the Executive Board of the International Monetary Fund (IMF) authorised Pakistan's 37-month Extended Fund Facility (EFF) agreement, which is valued at around USD 7 billion.
As per ARY News, the 37-month EFF agreement was made with a focus on key policies like sustainable public finances, lower inflation, and improved external buffers with an aim to support Pakistan's economic growth and stability.
According to specifics, the financial fund has highlighted the importance of having a strong investigative system to combat corruption. It has also recommended that the National Accountability Bureau (NAB) be strengthened in order to better align with the ruling of the top court and has requested the creation of an action plan aimed at curing corruption by June 2025.
Additionally, the international financial body has emphasised how crucial it is that the Federal Board of Revenue (FBR) be digitalised in order for all public declarations of assets made by government officials, including parliamentarians, ARY News reported.
The fund has pointed out corruption is undermining Pakistan's efforts to bring reforms, whereas NAB is not being provided with accurate data for investigations against corruption.
The fund has shown how corruption undermines Pakistan's attempts to implement reforms, and the NAB is not receiving reliable data for its anti-corruption investigations, as per ARY News.
"The government must ensure that NAB is provided with accurate data to investigate corruption cases effectively," the IMF stated.
On Friday, the IMF revealed Pakistan's new borrowing requirements and reported that it had urged the Pakistani government to take required steps to stabilise the macroeconomic environment in accordance with the terms of the loan arrangements.
The government of Pakistan has been requested to provide economic reforms and favourable circumstances for the private sector to catalyse the economy. Along with increasing its revenue base and cutting government spending, the foreign lender has also pushed Pakistan to accelerate reforms in government-owned businesses, ARY News stated.
According to the report, Pakistan's GDP is expected to stay between 4 and 4.5 per cent from FY2024-2025 to FY2029-2030, while inflation is expected to stay between 6.6 and 9 percent, ARY News reported.
The IMF has emphasised how important it is to put the economic reform ideas into action.
Following the approval of a 37-month Extended Fund Facility totalling USD 7 billion by the IMF Executive Board, Pakistan received the first tranche of the IMF on September 27.
As per ARY News, on Friday, the State Bank of Pakistan (SBP) said that it has received the first tranche of SDR 760 million, or USD 1026.9 million, from the IMF.