The International Monetary Fund (IMF) has dispatched a mission to Pakistan to conduct a comprehensive governance and corruption diagnostic assessment (GCDA). This visit aims to identify vulnerabilities related to corruption and recommend measures to enhance transparency and accountability. The Ministry of Finance and Revenue clarified that the IMF's long-standing role in providing advice and technical assistance has been instrumental in promoting good governance, particularly in fostering public sector transparency. The mission will evaluate key areas such as fiscal governance, central bank operations, financial oversight, market regulation, rule of law, and anti-money laundering efforts. The resulting report will offer actionable recommendations to support Pakistan's efforts towards inclusive and sustainable economic growth.
In an effort to promote robust governance practices, the IMF has historically focused on guiding countries toward correcting macroeconomic imbalances and implementing reforms that foster economic efficiency and stability. Since 1997, the IMF has emphasized the importance of economic governance through its policy framework. In 2018, this commitment was further strengthened with the adoption of a new Framework for Enhanced Engagement on Governance. This policy underscores the critical role of good governance in ensuring the rule of law, enhancing public sector efficiency, and combating corruption—elements essential for economic prosperity.
The GCDA process involves a detailed analysis of various state functions to pinpoint areas where corruption risks are most pronounced. By examining these sectors, the IMF can provide tailored recommendations to address specific vulnerabilities. Since its inception in 2018, the GCDA initiative has produced reports for several countries, including Sri Lanka, Mauritania, Cameroon, Zambia, and Benin. Additionally, ten assessments are currently underway, with more under consideration. The goal is to systematically prioritize and sequence actions to mitigate identified risks.
During their visit, the IMF team will engage with multiple Pakistani institutions, including the Finance Division, Federal Board of Revenue, State Bank of Pakistan, Auditor General of Pakistan, Securities and Exchange Commission of Pakistan, Election Commission of Pakistan, and the Ministry of Law and Justice. These interactions will help gather insights into the current governance landscape and inform the final recommendations. The GCDA report is expected to provide valuable guidance for reform initiatives aimed at strengthening institutional capacities and promoting transparency.
The government of Pakistan values the technical support provided by the IMF in this endeavor. The recommendations from the GCDA will play a crucial role in shaping future policies and reforms, ultimately contributing to the country's pursuit of inclusive and sustainable economic development. Through this collaborative effort, Pakistan aims to build a more resilient and transparent governance framework, fostering an environment conducive to long-term economic growth and stability.