Islamabad says IMF team in Pakistan for governance review, not judicial oversight

The International Monetary Fund headquarters building is seen during the IMF/World Bank spring meetings in Washington on April 21, 2017. (REUTERS/File)
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Updated 10 February 2025
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Islamabad says IMF team in Pakistan for governance review, not judicial oversight

  • Finance adviser says IMF mission is evaluating corruption vulnerabilities across six core state functions
  • IMF team will engage with law ministry, finance division, financial institutions, and election commission

ISLAMABAD: An International Monetary Fund (IMF) team is currently visiting Pakistan to conduct a Governance and Corruption Diagnostic Assessment (GCDA), a finance ministry official said on Monday, adding the visit has nothing to do with the country’s judicial system or a review of Pakistan’s ongoing $7 billion IMF program.
The statement came a day after the finance ministry said the three-member IMF mission would conduct the governance and corruption assessment to recommend reforms for transparency, institutional strengthening and sustainable growth in the South Asian country.
Pakistan, currently bolstered by the $7 billion IMF facility that was granted in September, is navigating an economic recovery path. IMF bailouts are critical for Pakistan, which narrowly avoided a sovereign default in June 2023 by clinching a last-gasp, $3 billion IMF loan.
The global lender is set to review Pakistan’s progress on the current $7 billion program by March, with the government and central bank expressing confidence about meeting the targets.
“All rumors suggesting that the IMF team is here to evaluate the judicial process or other related matters are baseless and nothing of that sort is happening during this visit,” Khurram Shehzad, an adviser to Finance Minister Muhammad Aurangzeb, told Arab News.
“The purpose of the IMF team’s visit is to assess the governance structure, which falls under the global lender’s mandate for countries under its program.”
Arab News approached the IMF mission currently visiting Pakistan but did not get a reply by the filing of this story.
Shehzad refuted reports suggesting that the IMF team would meet members of the Judicial Commission of Pakistan next week to discuss the process of judges’ appointment.
The reports emerged amid calls from lawyer bodies and opposition to repeal the 26th constitutional amendment, which empowered parliament to pick the country’s top judge and introduced fundamental changes in the appointment of judges in the superior judiciary.
Shehzad said the IMF team’s visit was not sudden, it was rather planned in July 2024 as part of Pakistan’s previous $3 billion Stand-By Arrangement (SBA).
“This visit is unrelated to the six-month review of the current IMF program, which will be conducted by a separate team,” he said. “That team has not yet arrived in Pakistan and is expected [to arrive] by the end of February or the first week of March.”
He said this was not a new development neither exclusive to Pakistan as similar assessments had been conducted in many other countries.
“They are in Pakistan to conduct a Governance and Corruption Diagnostic Assessment (GCDA), focusing on evaluating corruption vulnerabilities across six core state functions, including fiscal governance, central bank governance and operations, financial sector oversight, market regulation, rule of law, and Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT),” the finance adviser said.
The IMF has been offering guidance and technical support for a long time, which has contributed to improved governance by enhancing public sector transparency and accountability, according to the official.
“They followed a process in which they assess a country’s governance structure by meeting regulators and institutions to explore ways to improve it in line with global best practices,” he shared.
Following the analysis, Shehzad said, the IMF team will provide GCDAs with recommendations to systematically address the vulnerabilities.
“They will provide a comprehensive overview of the governance structure, highlighting areas for improvement and suggesting methods to bring that improvement and the report on the IMF team’s assessment will be published by the government in July this year,” he added.
The IMF mission will mainly engage with the Finance Division, Federal Board of Revenue, State Bank of Pakistan, Auditor General of Pakistan, Securities & Exchange Commission of Pakistan, Election Commission of Pakistan, and Ministry of Law & Justice, according to Pakistan’s finance ministry.
Traditionally, the IMF’s main focus has been to encourage countries to correct macroeconomic imbalances, reduce inflation, and undertake key trade, exchange and other market reforms needed to improve efficiency and support sustained economic growth.
“While these remain its main focus in all its member countries, however, the IMF has found that a much broader range of institutional reforms is needed if countries are to establish and maintain private sector confidence and thereby lay the basis for sustained growth,” the ministry said in a statement, adding that the IMF identified that promoting good governance in all its aspects, including ensuring the rule of law, improving the efficiency and accountability of the public sector and tackling corruption, are essential elements of a framework within which economies can prosper.
In 1997, the IMF adopted a policy on how to address economic governance, embodied in the Guidance Note “The Role of the IMF in Governance Issues.” To further strengthen the implementation of this policy, the IMF adopted in 2018 a new Framework for Enhanced Engagement on Governance (Governance Policy) that aims to promote more systematic, effective, candid, and evenhanded engagement with member countries regarding governance vulnerabilities, including corruption, that are critical to macroeconomic performance, according to the finance ministry.
Under this policy and framework, the IMF offers to undertake GCDA with member countries to analyze and recommend actions for addressing corruption vulnerabilities and strengthening integrity and governance in IMF member countries. Since 2018, 20 GCDA reports have been finalized, including those for Sri Lanka, Mauritania, Cameroon, Zambia, and Benin and ten diagnostics are ongoing, with several more under IMF consideration.


Pakistan charges Baloch activist with ‘terrorism’

Updated 23 March 2025
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Pakistan charges Baloch activist with ‘terrorism’

  • Mahrang Baloch staged sit-in in Quetta on Friday to demand release of members of her group allegedly detained by security forces
  • Pakistan’s military strongly denies Baloch’s accusations of carrying out extrajudicial killings, enforced disappearances of Baloch persons

QUETTA: Pakistan on Sunday charged a Baloch rights activist with terrorism, sedition and murder after she led a demonstration which ended in the death of three protesters, according to police documents.

Mahrang Baloch, one of Pakistan’s most prominent human rights advocates, has long campaigned for the Baloch ethnic group, which claims it has been targeted by Islamabad with harassment and extrajudicial killings.

Pakistan’s military and the central government in Islamabad strongly refute her allegations. 

Pakistan has been battling a separatist insurgency in Balochistan for decades, where militants target state forces and foreign nationals in the mineral-rich southwestern province bordering Afghanistan and Iran.

On Friday, she and other activists took part in a sit-in protest outside the University of Balochistan in the provincial capital of Quetta.

They demanded the release of members of their support group, whom they allege had been detained by security agencies.

Police launched a pre-dawn raid on Saturday, arresting Baloch and other activists, during which at least three protesters died. Both sides blamed each other for the deaths.

Mary Lawlor, the United Nations special rapporteur on human rights defenders, said she was “very concerned” at Baloch’s arrest.

Baloch and other protesters have been charged with terrorism, sedition and murder, according to the police charge sheet seen by AFP.

Hamza Shafqaat, a senior administrative official in Quetta, said that Baloch and other activists were held under public order laws.

Her lawyer, Imran Baloch, confirmed she was detained in a jail in Quetta.

Baloch was barred from traveling to the United States last year to attend a TIME magazine awards gala of “rising leaders.”

Protests among the Baloch are often led by women. Baloch, now in her 30s, began her activist career aged 16 when her father went missing in what his supporters said was an alleged “enforced disappearance.” His body was found two years later.

Earlier in March, the separatist Baloch Liberation Army (BLA) — which accuses outsiders of plundering the province’s natural resources — launched a dramatic train siege that officials said ended in around 60 deaths, half of whom were separatists behind the assault.


President Zardari confers civil awards on 69 Pakistani and foreign nationals

Updated 23 March 2025
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President Zardari confers civil awards on 69 Pakistani and foreign nationals

  • Asif Zardari confers awards during investiture ceremony on Pakistan’s Republic Day 
  • Former PM Zulfikar Ali Bhutto posthumously awarded Nishan-e-Pakistan award

ISLAMABAD: President Asif Ali Zardari on Sunday conferred the country’s top civil awards on 69 Pakistani and foreign nationals in recognition of their services in their respective fields, the state-run Associated Press of Pakistan (APP) said. 

The awards were conferred at an investiture ceremony held to mark Pakistan’s Republic Day celebrated every year on Mar. 23 in the capital city of Islamabad. 

The ceremony was held at the Aiwan e Sadr or the official residence of the president, in which different personalities were decorated with civil awards in recognition of their services in health, education, literature, journalism, public, research, diplomatic matters and economy.

“President Asif Ali Zardari on Sunday conferred Pakistan’s civil awards upon 69 personalities including Pakistani nationals and foreigners in recognition of their outstanding services in various fields,” APP said. 

Late former prime minister Zulfikar Ali Bhutto, who was also the founder of the Pakistan Peoples Party (PPP) led by Zardari, was posthumously awarded the Nishan-e-Pakistan award. His daughter Sanam Bhutto, Zardari’s sister-in-law, received the award on her father’s behalf. 

Bhutto was hanged on April 4, 1979, in Rawalpindi District Jail, where he had been confined since his conviction on charges of conspiring to murder a political opponent. The charismatic, Western-educated leader served as the fourth president of Pakistan from 1971 to 1973, and later as the country’s ninth prime minister from 1973 to 1977. 

He was ousted in a military coup by General Mohammad Zia-ul-Haq on July 5, 1977, following an election in which Bhutto is widely charged with having rigged the vote.

Legal experts have for years questioned Bhutto’s trial both in the Lahore High Court and the Supreme Court, and raised questions on the conduct and procedure of the hearings, as well as on the fact that they took place while Pakistan was under military rule. Analysts argue this is the reason Bhutto’s death penalty judgment has never been cited as a precedent in any subsequent case in Pakistan’s judicial history.

Pakistan’s top court, in a landmark verdict in March last year, admitted Bhutto did not get a fair trial. 

The foreign nationals who were awarded by the president include Hyder Qurbanov and Dr. Christine Brunhilde, who received the Sitara-e-Quaid-e-Azam award, while Agostino Da Polenza and Professor Valeria Picacentini were issued the Tamgha-e-Pakistan, and Dr. Xinmin Liu was awarded the Tamgha-e-Quaid-e-Azam.

Separately, Zardari granted military awards to Military awards to the officers and soldiers of the Pakistan Army, Navy and Air Force.

These awards included two Sitara-i-Basalat, 227 Tamgha-i-Basalat, 82 Imtiazi Asnad, 185 Chief of Army Staff Commendation Cards, 23 Hilal-i-Imtiaz (Military), 112 Sitara-i-Imtiaz (Military) and 133 Tamgha-i-Imtiaz (Military) awards.


Peace in Afghanistan necessary for regional stability, says Pakistani envoy amid surging tensions

Updated 23 March 2025
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Peace in Afghanistan necessary for regional stability, says Pakistani envoy amid surging tensions

  • Muhammad Sadiq Khan is on a three-day visit to Afghanistan to discuss bilateral matters amid surging militancy 
  • Army says 16 militants attempting to enter Pakistan via Afghanistan gunned down in North Waziristan district

ISLAMABAD: Peace and progress in Afghanistan are necessary for regional stability, Pakistan’s special envoy Muhammad Sadiq Khan said on Sunday, amid rising tensions between the neighboring countries due to militancy. 

Khan, Pakistan’s special representative to Afghanistan, is on a three-day visit to the country to discuss bilateral matters with Afghan officials. His visit takes place amid tense relations between the two countries due to a mix of security, political and border issues, with Islamabad accusing the Taliban-led interim government in Kabul of providing safe haven to anti-Pakistan militant groups facilitating cross-border attacks. Kabul has denied the allegations.

The friction escalated after a recent targeting of a passenger train in Pakistan’s southwestern Balochistan province, claimed by the separatist Baloch Liberation Army (BLA). Pakistani officials said the BLA fighters remained in contact with “handlers” based in Afghanistan during the attack that lasted for two days and involved hundreds of hostages.

“Peace and progress in Afghanistan is essential for regional stability,” Khan was quoted as saying by Pakistan’s embassy in Kabul on the occasion of Pakistan’s Republic Day. 

“Pakistan and Afghanistan must synergize their efforts to foster regional economic development.”

Pakistan’s special envoy, Muhammad Sadiq Khan, attends the flag hoisting ceremony at Pakistan's embassy in Kabul on March 23, 2025, on Republic Day. (Muhammad Sadiq Khan/X)

The Pakistani envoy described Afghanistan as “one of the most important regional partners” of his country, stressing the need for both to work together to enhance bilateral trade and regional connectivity. 

“Pakistan remains committed to a strong and mutually beneficial bilateral relationship with Afghanistan,” Khan said.

Meanwhile, Pakistan’s military said in a statement on Sunday that it gunned down 16 militants who attempted to cross into Pakistan from Afghanistan on the night between Mar. 22-23 in the North Waziristan district. 

“Pakistan has consistently been asking Interim Afghan Government to ensure effective border management on their side of the border,” the Inter-Services Public Relations (ISPR), the military’s media wing, said.

“Interim Afghan Government is expected to fulfil its obligations and deny the use of Afghan soil by Khwarij for perpetuating acts of terrorism against Pakistan.”

The ISPR said Pakistan’s security forces are committed to securing its borders and eliminating “terrorism” from the country.

Pakistan’s ties with Afghanistan were also strained after the former launched a nationwide deportation campaign targeting undocumented foreigners, mostly Afghans, in November 2023, shortly after a series of deadly suicide bombings that officials blamed on Afghan nationals.

The move, which added to diplomatic tensions between the two countries, has so far led to the repatriation of more than 800,000 Afghans. Many of them had lived in Pakistan since fleeing the Soviet invasion of their country in 1979.

The Pakistani government earlier this month also directed Afghanistan Citizen Card holders to leave the country by March 31, warning they would face deportation if they failed to comply.


In Pakistani capital, Ramadan night festival showcases over 100 small businesses

Updated 23 March 2025
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In Pakistani capital, Ramadan night festival showcases over 100 small businesses

  • ‘Winter Fete Suhoor and Eid Night Bazaar’ event features businesses selling home decor, food, textiles and fashion accessories
  • Entrepreneurs praise festival for helping establish relationships with potential customers, building brand awareness 

ISLAMABAD: A vibrant Ramadan festival held in Pakistan’s capital city Islamabad this week featured over 100 small businesses and their products ranging from handcrafted textiles to homemade food items, bringing together entrepreneurs, food lovers and eager shoppers. 

The ‘Winter Fete Suhoor and Eid Night Bazaar,’ initially conceived as an annual event, has now grown into a bi-monthly tradition. It offers a vital launching pad for startups and home-based businesses to showcase their products. 

The latest edition of the festival was held at founder Sabeen Abdal’s house in Islamabad on Saturday, Mar. 22, from 6:00pm to 1:30am. It featured an eclectic mix of businesses selling home decor, handcrafted textiles, food items and fashion accessories.

“We started this as an opportunity for startups who don’t have storefronts to showcase their products,” Abdal told Arab News. 

“There’s a big shortage of such events in our city, so now we host an event every two months,” she explained. “Many of our vendors are women-led businesses and startups, which makes this even more special.”

A visitor inspects clothes at ‘Winter Fete Suhoor and Eid Night Bazaar’ event in Islamabad, Pakistan, on March 22, 2025. (AN photo)

Zara Nadeem, an entrepreneur whose business specializes in wardrobes and home decor, agreed. She said the festival was an opportunity for entrepreneurs such as herself to engage with potential customers.

“Events like this help us create brand awareness and consolidate our brand,” Nadeem, who recently opened her first showroom, said. 

“We are trying to shift the mindset that quality only comes from imported products. We want to produce high-quality items locally in Pakistan.”

A vendor awaits customers at her mehndi stall at the ‘Winter Fete Suhoor and Eid Night Bazaar’ event in Islamabad, Pakistan, on March 22, 2025. (AN photo)

Jumana Vijlani, an entrepreneur who recently launched her fashion jewelry business, said the festival was proving to be a stepping stone for her to gain much-needed brand exposure.

“We are a new startup, and it has only been a few months since we began,” Vijlani said. “Events like these provide us with much-needed opportunities to advertise and boost our sales.”

Beyond shopping, the festival served as a lively social gathering where visitors connected with friends and family while supporting small businesses. 

The food stalls were a major attraction, offering popular Ramadan treats such as dahi bhallay, chaats, and traditional teas.

Hina Raza, the owner of a home-based food business, shared how such festivals play a crucial role in motivating her to pursue her passion for cooking after leaving her teaching career. 

“A year ago, I left teaching to pursue this full-time, and events like this not only help us financially but also motivate and uplift us,” Raza said. 


Pakistan PM says will announce relief in electricity costs ‘soon’ 

Updated 23 March 2025
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Pakistan PM says will announce relief in electricity costs ‘soon’ 

  • Shehbaz Sharif chairs high-level meeting on matters relating to Pakistan’s Power Division
  • Pakistan’s energy sector has struggled with financial strain due to circular debt, power theft

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif said on Sunday he would “soon” announce a comprehensive package providing relief to the masses in terms of electricity prices, state-run media reported. 

Pakistan has aggressively pursued reforms in its energy sector, which has long struggled with financial strain due to circular debt, power theft and transmission losses. These problems have led to blackouts and high electricity costs in the country.

Sharif chaired a meeting in Islamabad to review matters related to the Power Division on Sunday, state broadcaster Radio Pakistan reported. 

“Prime Minister Shehbaz Sharif says a comprehensive package will be announced soon to provide relief to the public in electricity costs,” the state broadcaster said.

Sharif said his government would be able to provide more relief to the people in prices of electricity due to its recent power reforms. 

He directed authorities to expedite the process of privatizing power distribution companies, urging them to resolve legal or other matters relating to the liquidation of power generation companies.

The Pakistani premier said promoting renewable energy was a “priority” of his government, clarifying that there is no change in the government’s policy on solar energy.

The clarification comes as Pakistan’s Economic Coordination Committee (ECC) earlier this month revised the buyback rate for solar net-metering electricity from Rs27 per unit to Rs10 per unit, saying the move was intended to ease the burden on grid consumers. 

Pakistan has sought to ease fiscal pressure aggressively in recent months by undertaking energy reforms that reduce tariffs and slash capacity payments to independent power producers (IPPs). 

The federal cabinet approved a plan in January to renegotiate agreements with 14 IPPs in its bid to lower electricity costs and address the country’s mounting circular debt.