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
https://arab.news/5km3e
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 says Afghanistan has created conditions ‘similar to or worse than’ pre-9/11 attacks
- The statement followed a suicide blast at a mosque in Islamabad that killed over 30, injured 169
- Pakistan frequently accuses the Afghan Taliban of backing militants, an allegation denied by Kabul
ISLAMABAD: Pakistan’s president has warned that the Taliban’s government in Afghanistan has created conditions “similar to or worse than” those before the Sept. 11, 2001, attacks, a sign of rising tensions with Kabul after last week’s mosque attack in Islamabad, which analysts said Monday highlights militants’ reach to the capital.
Asif Ali Zardari made the remarks while thanking the international community for condemning Friday’s suicide bombing at a Shiite mosque that killed 31 worshippers and wounded 169. Without directly blaming India, Zardari also said Pakistan’s eastern neighbor was “assisting the Taliban regime and threatening not only Pakistan but regional and global peace.”
In a statement issued Sunday, Zardari said Pakistan “takes strong exception to the situation in Afghanistan where the Taliban regime has created conditions similar to or worse than pre-9/11, when terror organizations posed threats to global peace.” He added that Pakistan had long maintained terrorism cannot be confronted by any single country in isolation.
The unusually strong comments were likely to irk Kabul and New Delhi, both of which have condemned the suicide attack claimed by Daesh (Islamic State) and have denied any involvement.
The previous Afghan Taliban government, which ruled Afghanistan from 1996 to 2001, had been blamed for sheltering the Al-Qaeda chief Osama bin Laden who was behind the Sept. 11, 2001 attacks that killed more than 3,000 people in the United States. The Afghan Taliban also allowed Al-Qaeda to operate training camps within Afghanistan, despite international warnings. However, bin Laden was killed during a US commando operation in Pakistan in May 2011.
Last week, Afghanistan’s Defense Ministry and New Delhi, in separate statements, rejected the Pakistani allegations, saying Islamabad had irresponsibly linked them to the attack.
Pakistan frequently accuses the Afghan Taliban, who returned to power in August 2021 in Afghanistan, of backing militants including the Pakistani Taliban, known as Tehreek-e-Taliban Pakistan (TTP). Both deny the accusations.
There was no immediate response from India or Afghanistan to Zardari’s latest allegations, which came after Interior Minister Mohsin Naqvi said the bomber involved in the attack was a Pakistani and trained by Daesh in Afghanistan.
Naqvi said security forces had arrested four suspects, including an Afghan national accused of links to the militant group and of helping mastermind the attack. The detainees included the bomber’s mother and brother-in-law, according to officials who said investigations into the attack were still ongoing.
Pakistan has not shared full details about the involvement of the bomber’s family, however.
On Monday, Naqvi received telephone calls from his Italian counterpart Matteo Piantedosi and European Commissioner Magnus Brunner, who condemned the mosque attack. According to a government statement, Naqvi maintained that “Pakistan is a shield for the world against terrorism and emphasized that strong global-level measures are needed today to protect the world from terrorism”.
Asif Durrani, Pakistan’s former special representative for Afghanistan, said Zardari’s warning was “unambiguous: terrorism thrives where it is tolerated, facilitated, or used as a proxy.”
He wrote on X that “allowing terrorist groups to operate from Afghan soil and India’s use of proxies to destabilize Pakistan is a dangerous path with grave regional and global consequences.” Durrani added, “Peace demands responsibility, not denial.”
Another Islamabad-based analyst, Abdullah Khan, said the preliminary findings into the mosque bombing suggest the attack may reflect a pattern seen in some IS attacks involving close family networks. He said the IS affiliates have at times recruited entire families, pointing to past attacks in Pakistan and Indonesia.
Although Islamabad has seen fewer attacks than some other regions, Pakistan has experienced a recent rise in militant violence, much of it attributed to Baloch separatist groups and the TTP, which is separate from but allied with Afghanistan’s Taliban.
Daesh’s regional affiliate, a major Taliban rival, has carried out attacks across Afghanistan.
