KARACHI: An IMF team visiting Pakistan to undertake a Governance and Corruption Diagnostic Assessment (GCDA) will conclude its mission today, Monday, an official with direct knowledge of the review said.
IMF staff reached a deal with Pakistan for a new $1.3 billion arrangement last month and also agreed on the first review of the ongoing 37-month bailout program. Pending board approval, Pakistan can unlock the $1.3 billion under a new climate resilience loan program spanning 28 months. The IMF will also release $1 billion for the South Asian nation under its $7 billion bailout program, which would bring those disbursements to $2 billion.
“Following a scoping mission in February, an IMF team is in Pakistan until April 14 [Monday] to undertake a Governance and Corruption Diagnostic Assessment (GCDA),” an official privy to the negotiations told Arab News, requesting anonymity as he was not authorized to speak to the media. “A press release will be issued at the conclusion of the mission.”
The IMF bailout program, secured mid-year in 2024, has played a key role in stabilizing Pakistan’s economy and the government has said the country is on course for a long-term recovery.
The GCDA is a detailed assessment tool used by the global lending agency to identify governance vulnerabilities in areas such as fiscal management, financial oversight and the rule of law. It is designed to support targeted reforms to improve transparency, accountability and institutional performance.
The IMF conducted the preliminary phase of the assessment in February at the request of the Pakistani government. Following the visit, it praised the country’s commitment to governance reform. A second review began on Apr. 4.
A separate technical team from the IMF is also scheduled to visit Pakistan this week to hold discussions with senior officials from the Federal Board of Revenue (FBR) regarding taxation proposals for the upcoming budget of 2025-26.
“The visit … will see talks focused on expanding the country’s narrow tax base, with a particular emphasis on bringing retailers and other untaxed sectors into the tax system,” Profit, a top Pakistani business publication, reported last week.
“One of the key issues on the table will be the government’s desire to reduce tax rates for salaried individuals, a move the IMF will likely evaluate as part of broader fiscal discussions.”
A high-powered Pakistani delegation, led by Finance Minister Mohammad Aurangzeb, will participate in the upcoming annual spring meetings of the IMF and World Bank in Washington from April 21-26.
