The government has expressed strong reservations over various demands related to the International Monetary Fund’s (IMF) governance and corruption diagnostic report for Pakistan.
According to details, an important meeting of various stakeholders was held last week in the Ministry of Finance, with the purpose of preparing the Government of Pakistan’s formal response to the IMF’s “Governance and Corruption Diagnostic Report” draft.
The IMF’s demand to establish a new authority for bureaucrats to declare their assets will face resistance, and Pakistan’s stance is that the Federal Board of Revenue (FBR) and other relevant institutions already exist for this purpose.
The Pakistani side is considering formally challenging this report in writing and will take the position that since the government is already implementing “right-sizing” to limit its scope, there is no need to establish any new authority.
It should be noted that the IMF’s diagnostic report highlighted weaknesses in public finance management, tax administration, the role of the Auditor General, the procurement process, and the enforcement of anti–money laundering laws.
The IMF had proposed the establishment of an authority in this regard and also presented examples from some other countries.
The IMF has demanded that strict regulations be implemented to restrict supplementary grants without prior parliamentary approval, that parliamentarians’ schemes be fully incorporated into the formal budget process, and that the budget strategy paper be published in advance to ensure financial discipline and transparency.
The government has not yet formally approved the publication of the IMF’s report titled “Governance and Corruption Diagnostic Report (GCD),” therefore it is likely that Pakistan will demand amendments to it before allowing its release.
