ISLAMABAD: The International Monetary Fund (IMF) has called on Pakistan to take firm anti-corruption measures within major government departments, urging the government to appoint leadership in key oversight institutions strictly on merit.
In its Governance and Corruption Diagnostic Assessment Report, the global lender identified Pakistan’s 10 most corruption-prone entities and recommended a risk-based action plan to reduce graft and mismanagement. The report, prepared after consultations with over 30 government departments and top officials including the Chief Justice of Pakistan, stresses the need for greater transparency, independence, and accountability across the federal system.
Sources revealed that the IMF specifically mentioned the National Accountability Bureau (NAB), the Securities and Exchange Commission of Pakistan (SECP), and the Competition Commission of Pakistan (CCP) as institutions that require merit-based appointments to ensure independence from political influence. It also proposed a review of their governing laws to guarantee fair and transparent selection procedures.
The government had pledged to the IMF that it would publish the report by end of July and submit an implementation plan by end of October, but the delay has become one of the stumbling blocks to securing the next loan tranche under the Fund’s program.
To strengthen oversight, the IMF suggested that Pakistan release an annual progress report on the implementation of anti-corruption plans. It also advised creating an independent internal audit office within the Federal Board of Revenue (FBR), establishing an internal affairs unit under the direct control of the FBR chairman, and conducting an independent audit of the tax authority’s IT systems.
The report found serious governance flaws in the FBR, noting that its field officers possess excessive powers that should ideally rest with the federal cabinet or parliament. It urged a restructuring of the FBR to improve performance, enhance monitoring, and ensure accountability.
Additionally, the IMF advised Pakistan to publish a Tax Simplification Strategy by May next year, aimed at cutting multiple tax rates, minimizing special regimes, and reducing the overuse of advance and withholding taxes. The plan should also rationalize exemptions and limit FBR’s rule making powers.
The Fund further proposed ensuring institutional independence for the Auditor General of Pakistan (AGP) by amending relevant laws. Currently regulated by the Ministry of Finance, the AGP audits both federal and provincial accounts, though its reports are often underutilized or ignored.
The IMF’s overall goal, according to the report, is to help Pakistan strengthen governance, uphold the rule of law, and build a judicial system that supports business and investment rather than hindering them.
If implemented, these recommendations could significantly improve public trust, enhance institutional performance, and move Pakistan closer to achieving long-term economic stability and transparency.
