Pakistan and the International Monetary Fund (IMF) are set to begin a new round of negotiations on September 25th, with several critical structural reforms remaining incomplete. Sources indicate that multiple benchmarks required under the current IMF program have not been fulfilled, setting the stage for challenging talks. This review is crucial for the continuation of the financial support program that is vital for the country’s economic stability.
A significant unfinished item confirmed by the Ministry of Finance is the required policy action plan for the privatization of Pakistan’s electricity distribution companies. This failure to finalize the plan leaves a major IMF condition unmet. Officials have disclosed that at the time of the last review, five out of a total of 22 structural benchmarks had not been achieved, highlighting a substantial implementation gap.
The list of pending reforms includes several major governance and legislative changes. The publication of a Corruption and Governance Diagnostic Assessment Report is still outstanding. Furthermore, essential amendments to the State-Owned Enterprises (SOE) Act have not been completed, and the IMF’s agenda also includes revising the law governing Sovereign Wealth Funds.
Another key unfulfilled condition is the redrafting of the Public Finance Management Act, a measure highlighted in the Ministry of Finance’s own documents. These delayed actions represent core components of the broader structural reforms the IMF requires Pakistan to undertake. Their completion is seen as essential for securing the fund’s continued financial support and ensuring long-term economic governance.
