The International Monetary Fund (IMF) has warned that corruption remains one of the biggest obstacles to Pakistan’s economic stability, calling on the Special Investment Facilitation Council (SIFC) to immediately publish its first annual report and make its operations more transparent. In its Governance and Corruption Diagnostic Assessment (GCDA) a prerequisite for the upcoming $1.2 billion IMF disbursement the Fund stated that corruption has weakened public trust, slowed economic progress, and damaged the effectiveness of state institutions. The report stressed that the SIFC must establish clear operational rules and release details of all investment deals it has managed, including every tax, policy, and regulatory concession granted, along with the justification and monetary value of each decision.
The IMF found that corruption is deeply entrenched across Pakistan’s governance structure, leading to poor revenue collection, inefficient public spending, and declining trust in the justice system. It noted that privileged groups, often linked with the state, continue to influence important economic sectors for personal advantage. The Fund further highlighted weak accountability mechanisms, pointing out that Pakistan lacks a strong system to prevent corruption-linked money laundering. Although NAB and FIA have the legal authority to investigate such cases, very few inquiries result in prosecutions, and quarterly coordination meetings show little concrete progress.
According to the report, politically influenced and uneven enforcement of laws continues to weaken Pakistan’s anti-corruption efforts. Government officials often avoid making decisions due to fears of selective investigations, especially after past misuse of powers by NAB, which has damaged its credibility. This environment has normalized bribery as a “necessary evil” in a system burdened by excessive red tape. The IMF also warned that the asset declaration system, despite recent improvements, still lacks strong verification processes and risk-based checks, reducing its effectiveness in exposing hidden wealth.
The assessment also raised concerns regarding judicial independence, pointing to structural weaknesses and recent changes in the process of appointing Supreme Court judges, which have sparked constitutional debate and raised questions about the rule of law. The IMF concluded that Pakistan has strong potential for economic recovery and could boost its growth rate to 5% 6.5% over the next five years if it undertakes comprehensive governance reforms within the next three to six months.
