TRADE & ECONOMY

Federal Government Accepts IMF-Requested Special Audit of Supplementary Grants

Pakistan’s federal government agrees to IMF-requested special audit of supplementary grants; discussions also focus on tax reforms, public finance digitization, and budget transparency.
2025-11-22
Federal Government Accepts IMF-Requested Special Audit of Supplementary Grants

The federal government has agreed to conduct a special audit of supplementary grants at the request of the International Monetary Fund (IMF), sources said on Saturday. Supplementary grants are additional funds released by the government for specific purposes or unforeseen expenditures beyond the approved budget.

During a two-day IMF technical mission, the delegation reviewed the implementation of the budget process goals with Pakistan’s economic team. Detailed consultations were held on public finance management reforms, budgeting transparency, and efficiency improvements over a ten-day period.

Key Reforms Under Consideration

Sources indicated that the government agreed to amend the Public Finance Management Act before the next budget to make the process more transparent and effective. Proposals under consideration include:

·       Formulation of a digitized public finance management plan

·       Establishment of a monitoring committee for the plan

·       Use of e-office and e-pads at all stages of budget preparation

·       Elimination of data discrepancies in budgetary allocations

·       Increased consultation with ministries and data-driven budgeting

The IMF technical mission also discussed significant changes in tax policy, with the Finance Ministry expected to submit the final proposals to the IMF by next month.

Officials emphasized that these measures aim to strengthen transparency, improve fiscal management, and ensure that supplementary grants and the broader budget process are monitored efficiently, aligning with international best practices.