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.
Islamabad says IMF team in Pakistan for governance review, not judicial oversight
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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
Pakistan condemns fresh Israeli strikes killing hundreds of Palestinians in Gaza
- The surprise bombardment threatened to wreck the ceasefire in place since January and fully reignite the 17-month-old war
- Islamabad urges international community to end violence, resume diplomatic efforts for lasting peace in Gaza and Middle East
ISLAMABAD: Pakistan condemns fresh Israeli strikes on Gaza that have killed hundreds of people and threatened a ceasefire with Hamas, the Pakistani foreign office said on Tuesday, expressing fears about renewed regional instability.
Israel launched airstrikes across the Gaza Strip early Tuesday that killed more than 300 Palestinians, including women and children, according to hospital officials.
The surprise bombardment threatened to wreck the ceasefire in place since January and fully reignite the 17-month-old war, with Israeli officials saying the operation was expected to expand.
Pakistan’s Foreign Office condemned the strikes as a “horrific act of aggression” in the holy month of Ramadan and called it a flagrant violation of the ceasefire agreement.
“This horrific act of aggression, in the holy month of Ramadan, is a flagrant violation of the ceasefire agreement and marks a dangerous escalation that threatens to destabilize the entire region once again,” it said in a statement.
The surprise attack shattered a period of relative calm during the Muslim holy month of Ramadan and raised the prospect of a full return to fighting in a 17-month war that has killed tens of thousands of Palestinians and caused widespread destruction across Gaza. It also raised questions about the fate of the roughly two dozen Israeli hostages held by Hamas who are believed to still be alive.
Prime Minister Benjamin Netanyahu said he ordered the strikes because of a lack of progress in talks to extend the ceasefire. The White House said it had been consulted and voiced support for Israel’s actions.
A senior Hamas official said Netanyahu’s decision to resume the war amounts to a “death sentence” for the remaining hostages. Izzat Al-Risheq accused Netanyahu of launching the strikes to try and save his far-right governing coalition and called on mediators to “reveal facts” on who broke the truce.
“We urge the international community to play it’s role to immediately end the violence and resume diplomatic efforts toward an immediate and lasting peace in Gaza and the Middle East,” the Pakistani foreign office said.
Israel’s war on Gaza began after Hamas’ attack on southern Israel on Oct.7, 2023, which killed 1,200 people and over 200 others were taken into Gaza as hostages. The subsequent Israeli campaign killed around 50,000 Palestinians and displaced almost all of Gaza’s 2 million population, leaving the territory a wasteland.
Both sides agreed to an uneasy, six-week truce on Jan. 19 which paved the way for the release of hostages from both sides.
Pakistan mulls transaction structure for second attempt to privatize loss-making national airline
- Last year, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in PIA, a fraction of the asking price
- Pakistan is looking to privatize the debt-ridden airline to raise funds and reform state-owned enterprises as envisaged under a $7 billion IMF program
ISLAMABAD: Pakistan is mulling transaction structure for a second attempt to sale 51-100 percent share of its loss-making national carrier, the Pakistan International Airlines (PIA), the Privatization Commission said on Tuesday.
Cash-strapped Pakistan is looking to privatize the debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund (IMF) program secured last year.
Late last year, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in the national flag carrier, a fraction of the asking price of approximately $303 million.
On Tuesday, Muhammad Ali, Pakistan prime minister adviser on privatization, presided over the commission’s board meeting to discuss transaction structure for the divestment of the Pakistan International Airlines Corporation Limited (PIACL).
“The board recommended to CCOP (Competition Commission of Pakistan) the transaction structure proposed for the 2nd attempt of PIACL privatization based on divestment of 51 percent to 100 percent share capital of PIACL together with the management control of PIACL,” the Privatization Commission said.
“The final terms and conditions for the transfer and acquisition of equity stake shall be finalized during course of bidding process and set out in the bid documents for approval by CCOP.”
In June, the government had pre-qualified six groups, but only real-estate development company Blue World City participated in the bidding process to acquire the airline.
Among concerns raised by potential bidders for the PIA stake include policy continuity, honoring contracts, inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.
Officials say PIA’s cumulative losses alone are close to $3 billion, with the total asset valuation of the airline standing at approximately $572 million.
Earlier this year, PIA resumed operations in Europe, after a 2020 ban by the European Union Aviation Safety Agency (EASA) over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards.
EASA and UK authorities both suspended permission for PIA to operate in the region after Pakistan began investigating the validity of pilots’ licenses following a deadly plane crash that killed 97 people. Pakistan hopes new European routes and flying approval to the UK will boost PIA’s selling potential.
Pakistan’s top military, political leaders call for national consensus, political unity amid militancy surge
- Country’s top civilian and military leaders assembled at Parliament House on Tuesday to discuss measures to curb militancy
- Meeting of Parliamentary Committee on National Security called after hijacking of train by separatists in Balochistan province
ISLAMABAD: Pakistan’s Parliamentary Committee on National Security on Tuesday stressed the need for a national consensus to counter militancy, calling for a unified political stance to confront the threat with “full force of the state.”
The statement came after a meeting of Pakistan’s top civilian and military leaders at the Parliament House days after the hijacking of a passenger train by the Baloch Liberation Army (BLA) separatist group in Pakistan’s southwestern Balochistan province, holding hundreds of passengers hostage. The military launched an operation and, after a day-long standoff, rescued 354 captives and killed 33 insurgents. A final count showed 23 soldiers, three railway employees and five passengers had died in the attack.
Militant violence has persisted in the province following the incident, with three paramilitary soldiers among five people killed in a suicide attack in Balochistan’s Nushki district on Sunday. The escalation in attacks prompted National Assembly Speaker Sardar Ayaz Sadiq to convene a session of the parliamentary committee on Tuesday at Prime Minister Shehbaz Sharif’s advice.
Tuesday’s meeting at the Parliament House was attended by Prime Minister Shehbaz Sharif, members of the parliamentary committee, political leaders, Army Chief General Asim Munir, federal ministers and senior intelligence officials. The military leadership and intelligence officials briefed the participants on the security situation, while political leaders expressed their views on how to deal with the prevailing situation. At the end of the meeting, PM Sharif read out a communiqué that was later adopted by the committee unanimously.
“The committee stressed the need for a national consensus on counter-terrorism, emphasizing strategic and a unified political commitment to confront this threat with the full force of the state,” Sharif said.
“It also called for the immediate implementation of the National Action Plan and the Azm-e-Istahkam strategy to dismantle terrorist networks, counter logistical support, and eliminate the nexus between terrorism and crime.”
Sharif said the committee expressed concern over the “increasing misuse of social media platforms” by militant groups for propaganda, recruitment and coordinating attacks.
“It emphasized the need for immediate measures to curb this threat and called for a clear framework to counter terrorists’ digital presence and activities,” he added.
The committee reiterated that no institution, individual or group collaborating with enemy forces would be allowed to jeopardize Pakistan’s peace and stability, according to the premier. It expressed regret over the absence of some opposition members.
An alliance of opposition parties, led by jailed former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, declined to participate in the meeting, objecting to Khan’s absence from the moot.
Pakistan ranks as the second-most affected country by terrorism, according to The Global Terrorism Index 2025. Militancy-related deaths surged by 45 percent, rising from 748 in 2023 to 1,081 in 2024, marking one of the steepest global increases.
Militant attacks in Pakistan more than doubled, from 517 in 2023 to 1,099 in 2024. Balochistan and Khyber Pakhtunkhwa, bordering Afghanistan, remained the hardest-hit provinces, accounting for over 96 percent of attacks and fatalities.
‘GOVERNANCE GAPS’
Speaking at the forum, Army Chief Gen. Munir said no agenda, no movement and no personality was greater than the security of the country, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
“For sustainable development, all elements of national power will have to work in harmony. This is a battle of our survival and that of our future generations,” he was quoted as saying.
The army chief stressed the need for “better governance” in the country and making Pakistan a “hard state.”
“How long will we continue to sacrifice countless lives in the style of a soft state,” he asked. “How long will we continue to fill the governance gaps with the blood of the armed forces of Pakistan and the martyrs?“
The general urged religious scholars to expose the distorted interpretation of Islam by the religiously motivated militant groups.
“We exist only if the country exists,” he said. “There is nothing more important for us than the security of the country.”
Defense Minister Khawaja Muhammad Asif said Pakistan was planning a “decisive action” against militants.
“Civilian and military leadership are working to unite the entire nation against the terrorist enemy,” he said on X after the meeting. “The ranks have been formed, victory will be Pakistan’s.”
The minister criticized the PTI for its absence from the key security meeting: “No Khan, No Pakistan, is PTI standing by this slogan?”
Khan’s party said the ex-premier should have been invited to the meeting.
“No representative from us will attend the meeting and Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur would attend the meeting as the KP chief minister, not the party representative,” PTI Secretary General Salman Akram Raja announced at a press conference earlier in the day, saying Khan should have been invited by releasing him on parole.
Sayed Zulfikar Bukhari, a close Khan close aide and spokesperson for the international media, told Arab News the government and military wanted to use the PTI for its “upcoming adventures.”
“The government and army just want to use PTI for their upcoming misadventures in Balochistan and Afghanistan,” he told Arab News, questioning how the largest party in the country could attend the meeting without directions from their leader.
“Give us access to Khan to get directions as he is the only unifying figure in the country.”
Mahmood Khan Achakzai, an opposition leader, said instead of such meetings a joint session of parliament should have been called to discuss this important issue.
“Pakistan’s dire circumstances call for a joint session of parliament, where everyone must be given the opportunity to speak,” he said.
Pakistan shuts universities in southwest province over ‘security concerns’
- Security across the provincial capital has been heightened, with an increased number of security forces on the streets
- The decision to reopen the campuses will be made after the Muslim festival of Eid, just two weeks away, an official says
QUETTA: Pakistan’s volatile Balochistan province has ordered the closure of three universities in recent weeks due to “security concerns,” an official told AFP on Tuesday, as separatist attacks surge in the region.
Two universities in the provincial capital of Quetta were ordered to close for an “indefinite period” last week, while on Tuesday, a third was instructed to switch to virtual learning, a provincial administration official told AFP on condition of anonymity as he was not authorized to speak to the media.
“The decision was made after reviewing the overall security situation,” the official said
“It was decided to switch to virtual learning until further notice due to security concerns.”
The decision to reopen the campuses, which will impact thousands of students, will be made after the Muslim festival of Eid, just two weeks away, the official said.
Security across the provincial capital has been heightened, with an increased number of security forces on the streets and additional checkpoints set up throughout the city following the recent surge in separatist violence.
Last week, ethnic Baloch separatists attacked a train with 450 passengers on board, sparking a two-day siege during which dozens of people were killed.
And on Sunday, at least five paramilitaries were killed in a vehicle-borne suicide attack.
The assaults were claimed by the Baloch Liberation Army (BLA), one of a number of separatist groups that accuse outsiders of plundering natural resources in Balochistan near the borders with Afghanistan and Iran.
Pakistan to resume Jaffar Express train service today after deadly hijacking
- Separatist militants last week hijacked Jaffer Express and killed 31 people, including security personnel
- Railways Minister Hanif Abbasi says drone surveillance will be conducted for train operations in Balochistan
ISLAMABAD: Railways Minister Hanif Abbasi has announced the resumption of Jaffar Express train service today, Tuesday, Pakistani state media reported, a week after separatist militants hijacked the passenger train in the southwestern Balochistan province.
Fighters of the Balochistan Liberation Army (BLA) separatist group bombed a section of the railway track and stormed the Peshawar-bound Jaffar Express train carrying over 400 passengers, in Mushkaaf, a rugged area in the mountainous Bolan range of Balochistan on March 11.
The crisis was resolved the following day when the armed forces carried out a successful operation to rescue the hostages, killing 33 militants in the process. A final count showed 23 soldiers, three railway employees and five passengers had died in the attack.
Abbasi said the track, which had been damaged in the recent attack by separatist militants in Balochistan, has now been fully restored, the Radio Pakistan broadcaster reported.
“Jaffar Express will resume its operations from today. Drone surveillance will be launched for train operations in Balochistan,” Abbasi was quoted as saying.
“CCTV cameras are also being installed at railway stations and other sensitive locations across the country to improve security.”
In oil-and-mineral-rich Balochistan, Pakistan’s largest and least populated province, ethnic Baloch separatists have long accused the central government of denying locals of a share in the province’s resources. Islamabad and Pakistan’s military strongly reject the allegations.
The military has a huge presence in Balochistan and has long run intelligence-based operations against insurgent groups such as the BLA, who have escalated attacks in recent months on the military and nationals from longtime ally China, which is building key projects in the region, including a port at Gwadar.
More than 50 people, including security forces, were killed in August last year in a string of assaults in Balochistan claimed by the BLA.
