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Pakistan-IMF Talks Near Completion Amid Dispute Over Governance Report
Pakistan’s second economic review with the IMF nears conclusion. While progress made on tax and import reforms, disagreements persist over the release of the Governance and Corruption Report.
MH
by Muhammad Hashir
2025-10-08
Pakistan-IMF Talks Near Completion Amid Dispute Over Governance Report

The ongoing second half-year economic review talks between Pakistan and the International Monetary Fund (IMF) are expected to conclude today, with officials from the Ministry of Finance expressing optimism over the successful completion of the review under the $7 billion Extended Fund Facility (EFF).

The negotiations, which began on September 25, have reportedly been constructive and positive, according to senior Finance Ministry officials. While the IMF mission is set to return today, virtual discussions between both sides will continue in the coming days.

Officials believe that with the IMF Board’s endorsement, the third tranche of the $7 billion EFF program will soon be released, alongside the first $1.4 billion tranche under the Resilience and Sustainability Facility (RSF).

However, despite the overall progress, differences persist between the government and the IMF over the release of the Governance and Corruption Report, a key conditionality of the program.

According to insiders, a task force established to address governance issues has recommended significant reforms, including:

  • Mandatory disclosure of assets of government officers from grades 17 to 22 and their families,
  • Amendments to the Civil Servants Act, Election Act, NAB Ordinance, and FIA Act,
  • Measures for transparent accountability, enhanced investigative capacity, and nationwide anti-corruption awareness campaigns.

Meanwhile, both parties have reached agreements on several critical economic measures, including:

  • Ending tax-free car import schemes,
  • Abolishing baggage and gift schemes,
  • Tightening the Transfer of Residence Scheme, and
  • Allowing commercial imports of five-year-old used vehicles under conditional approval.

The IMF has reportedly instructed Pakistan to seek Economic Coordination Committee (ECC) approval for the implementation of these conditions within the month.

Officials say that while some policy gaps remain, the Finance Ministry expects a smooth conclusion to this phase of talks, marking a major step forward in Pakistan’s ongoing efforts to stabilize its economy, strengthen fiscal discipline, and enhance governance transparency.
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