The International Monetary Fund (IMF) has identified deep-rooted governance failures in Pakistan, pointing to political interference, weak institutional oversight, and fragmented policy-making as key drivers of corruption. Following a 12-day visit by the IMF legal mission led by Joel Turkewitz, the preliminary findings emphasize the urgent need for structural reforms to improve transparency and accountability across public institutions.
The IMF noted that appointments to civil service positions and top roles in state-owned enterprises are heavily influenced by political considerations. This politicization has eroded the meritocratic foundation of Pakistan’s bureaucracy and hindered effective governance. Moreover, the absence of a unified national anti-corruption policy has led to disjointed and uncoordinated efforts by agencies such as NAB, FIA, and various provincial bodies.
Legal amendments that were intended to address the misuse of NAB for political ends have instead weakened its overall effectiveness. The inconsistent implementation of the Right to Information Act further undermines efforts to enhance transparency. The IMF also raised serious concerns over the widespread circumvention of PPRA procurement rules, urging the government to revise legal frameworks to eliminate unjustified exemptions and loopholes.
Institutional accountability remains a major concern. Oversight bodies such as the Auditor General of Pakistan and the Competition Commission of Pakistan (CCP) have failed to exercise adequate scrutiny. The CCP’s ongoing interactions with the Pakistan Sugar Mills Association regarding pricing strategies were highlighted as particularly troubling. Additionally, delays in the judicial system and a massive backlog of cases continue to obstruct justice and weaken enforcement mechanisms.
Policy formulation in Pakistan suffers from reliance on unverified information and overlapping mandates among agencies, often resulting in ineffective or contradictory outcomes. The IMF warned that this approach prioritizes short-term gains over essential long-term structural reforms. While the IMF has shared its initial observations with Pakistani authorities, a comprehensive report with actionable recommendations is expected by August. The findings underscore the critical need for Pakistan to address systemic weaknesses and implement reforms aimed at reducing corruption and enhancing good governance.
