Pakistan accepts IMF condition for special audit of 10 years of supplementary grants

ISLAMABAD: Pakistan has accepted a key condition set by the International Monetary Fund (IMF) to conduct a special audit of supplementary grants issued over the past ten years, Finance Ministry sources said on Saturday.

The 10-day technical discussions between Pakistan and the IMF have now concluded. Officials also confirmed that Pakistan has agreed to another IMF requirement aimed at limiting the federal government’s discretionary authority to issue supplementary grants.

The IMF’s technical mission arrived in Pakistan on November 11 to review progress on budget-related targets. The talks focused on reforms in public finance management (PFM) and measures to enhance transparency in the budget process.

According to sources, the digital Public Finance Management Assessment was reviewed, and oversight mechanisms for the digitized PFM master plan were discussed.

The Auditor General of Pakistan will carry out the special audit to strengthen the mechanism, transparency, and effectiveness of supplementary grants.

Both sides also reached consensus on proposed amendments to the Public Finance Management Act, expected to be implemented before the next federal budget.

IMF Executive Board Meeting

Notably, the IMF has already released the schedule for its upcoming Executive Board meetings, with Pakistan’s case fixed for December 8.

According to the IMF, the Executive Board may approve a total of $1.2 billion for Pakistan, including the disbursement of $1 billion under the ongoing loan program.

Additionally, the first tranche of $200 million under the Resilience and Sustainability Facility (RSF) — aimed at supporting climate resilience initiatives — may also be released during the meeting.

On October 15, the International Monetary Fund (IMF) and Pakistan reached staff-level agreement under which the international lender will provide an additional $1.2 billion to the country.

According to the official statement, the IMF has approved a $1 billion tranche under the ongoing 37-month loan program, along with $200 million for climate resilience initiatives.