ISLAMABAD: Pakistan’s ruling party defended its controversial Assets Recovery Unit (ARU) on Saturday after opposition parties and the legal fraternity slammed the government’s accountability drive following the quashing of a presidential reference against senior judge, Justice Qazi Faez Isa, by the Supreme Court on Friday.
The legality of the ARU established by Prime Minister Imran Khan in 2018 has been repeatedly called into question for its sweeping powers and for targeting senior members of opposition parties.
The unit, formed without the backing of Parliament, was set up to repatriate illegal offshore assets and bring looted wealth back to Pakistan-- the linchpin of PM Khan’s election campaign.
“The ARU is a legal organization which will continue its work despite baseless allegations and propaganda by the opposition parties and a few others in the legal fraternity,” chief of ARU and the Prime Minister’s special assistant on accountability, Mirza Shahzad Akbar, told Arab News via telephone on Saturday.
Akbar said the ARU was established as per the government’s ‘rules of business’ and all its appointments and actions were validated by the federal cabinet.
“This is a coordinating unit which facilitates other public organizations to expedite the accountability process,” Akbar said.
On the Supreme Court’s remarks, he said all terms of reference of the unit were placed before the court for the satisfaction of the judges.
Accountability was the main agenda on the ruling party’s manifesto, Akbar added, and said the public had “given the mandate to Prime Minister Imran Khan to hold corrupts accountable.”
PM Khan rose to power in 2018 pledging accountability across the board, but critics have often termed the drive a politically motivated witch-hunt.
In the most recent criticism of the government’s initiative, senior lawyers once more raised questions on the legal status of the unit after the corruption case against Justice Isa was thrown out by a 10-judge full court.
“This government has made a mockery of justice and accountability with the questionable so-called assets recovery unit leading the drive,” Syed Amjad Shah, vice-chairman for Pakistan Bar Council, told Arab News.
“We are observing all the mala fide workings of the recovery unit and may challenge its very constitution in the Supreme Court in the coming days,” Shah said.
“The government’s whole accountability process is tainted as it is trying to implicate only the opposition members who have been criticizing its performance,” Senator Mushahidullah Khan, a senior Pakistan Muslim League-Nawaz (PML-N) lawmaker, told Arab News.
He added the ARU was “unconstitutional” as it was not approved by Parliament and was meant to influence other independent organizations like the National Accountability Bureau in the government’s favor.
“This body should be abolished immediately to restore the public’s confidence in other departments-- that they are working freely,” he said.
Echoing Mushahidullah’s viewpoint, a senior leader for Pakistan Peoples Party, Sehar Kamran, told Arab News the assets recovery unit had “failed to recover even a single rupee so far.”
“This unit is a political tool in the hands of the government for victimization of the opposition,” she said.
Government defends anti-corruption unit as opposition, lawyers slam accountability drive
https://arab.news/j2kq2
Government defends anti-corruption unit as opposition, lawyers slam accountability drive
- Says Asset Recovery Unit is legal organization with all actions validated by federal cabinet
- Pakistan Bar Council may challenge constitutionality of unit in Supreme Court
Pakistan central bank likely to hold rate at 11% as IMF flags inflation risks - Reuters poll
- Majority analysts see inflation hovering at 6%–8% in coming months before rising toward end of fiscal 2026
- Most respondents now believe State Bank will not begin easing until the closing months of FY26
KARACHI: Pakistan’s central bank is expected to retain interest rates at 11 percent on Monday, a Reuters poll showed, as analysts push back rate-cut forecasts to late 2026 after the IMF warned inflation risks persist and policy must stay “appropriately tight.”
All 12 analysts surveyed expect no cut in the policy meeting on Monday. A majority of them see inflation hovering at 6 percent–8 percent in the coming months before rising again toward the end of fiscal 2026 as base effects fade and food and transport prices stay volatile after flood-related supply disruptions.
Most respondents now believe the State Bank of Pakistan (SBP) will not begin easing until the closing months of FY26, which ends in June 2026, with some analysts pushing forecasts for the first cut into fiscal year 2027, beginning July 2026.
IMF WARNS AGAINST PREMATURE EASING
The IMF, in a second review released on Thursday, said monetary policy needs to remain “appropriately tight and data-dependent” to keep expectations anchored and noted that the SBP had maintained positive real interest rates on a forward-looking basis.
It said the tight stance had been pivotal in reducing inflation and should be maintained to ensure price stability and support the rebuilding of external buffers.
Analysts said these risks, along with the SBP’s preference for maintaining positive real interest rates, would keep policymakers cautious.
The SBP has held its policy rate at 11 percent since September, after cutting it by 1,100 basis points between June 2024 and May 2025 as inflation fell sharply from highs near 40 percent in 2023.
PRICE, EXTERNAL PRESSURES EDGE UP
Inflation has started to accelerate after months of decline, driven by food and transport costs and fading base effects. Headline inflation eased to 6.1 percent in November from 6.2 percent in October but remained above the SBP’s 5–7 percent target. The IMF expects inflation to temporarily accelerate to 8 percent–10 percent this fiscal year before stabilizing.
While Pakistan’s macroeconomic backdrop has stabilized somewhat, analysts said the recovery remains sensitive to external pressures.
Premature rate cuts could pressure the rupee even with anticipated IMF inflows, including $1.2 billion disbursement this week to bolster reserves and support climate-resilience reforms.
Any demand-driven uptick, said Sana Tawfik, head of research at Arif Habib Ltd, “will have an adverse impact on the external front.”










