IMF demands action against political harassment in corruption cases in Pakistan

ISLAMABAD: The International Monetary Fund (IMF) has warned Pakistan to take immediate action against corruption and political harassment in corruption cases, ARY News reported.

The International Monetary Fund (IMF) Executive Board on September 25 approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement of about US$7 billion.

The 37-month Extended Fund Facility arrangement aims to support Pakistan’s economic stability and growth, with key policy goals including sustainable public finances, reduced inflation, and strengthened external buffers.

As per details, the monetary fund has emphasized the need for an effective investigation system to combat corruption, suggesting that the National Accountability Bureau (NAB) be made more independent and effective in line with the top court’s decision and called for an action plan to eliminate corruption by June 2025.

Furthermore, the global financial body has stressed the importance of digitizing the Federal Board of Revenue (FBR) to make public declarations of assets of all government officials, including parliamentarians.

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 government must ensure that NAB is provided with accurate data to investigate corruption cases effectively”, IMF stated.

Yesterday, the International Monetary Fund unveiled new loan conditions for Pakistan.

The IMF in its report has urged the Pakistan government to work to stabilize the macroeconomic situation in line with the loan agreement.

Pakistan’s government has been asked to ensure economic reforms and conducive conditions for the private sector to boost the economy.

The international lender has also urged Pakistan to increase its tax net and slash government spending and expedite reforms in the government-owned entities.

The report predicted Pakistan’s GDP to remain between 4 to 4.5pc during FY2024-25 to 2029-30, while the inflation is predicted to remain between 6.6 to 9 per cent.

READ: IMF unveils $7bln loan conditions for Pakistan

IMF has stressed the need for implementation of the economic reforms policies.

On September 27, Pakistan received the first tranche of the International Monetary Fund’s (IMF) following the approval of the IMF Executive Board of a 37-month Extended Fund Facility amounting to US$7 billion.

State Bank of Pakistan (SBP) received SDR 760 million –equivalent to USD 1026.9 million– as the first tranche from the IMF on Friday, according to SBP.