IMF: challenges for the third review |
The International Monetary Fund (IMF) in its second review of the ongoing Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Fund (RSF) documents noted that the “The Structural Benchmark (SB) on publication of the Governance and Corruption Diagnostic (GCD) was not met but has been completed as a Prior Action.
The related SB on publication of the action plan based on the GCD’s recommendations was, in turn, not met; it is proposed to be reset for end-December 2025.”
This, without doubt, may be the major stumbling block to the next staff level agreement as the recommendations on which the action plan would be based are extremely politically challenging on three counts: (i) the right to information (RTI), with legal foundation, has yet to deliver, and the report cited the following entities, headed by influentially powerful ministers, where RTI were either left pending or simply closed: Capital Development Authority (21 under process with 68 closed), NADRA 20 under process and 66 closed, Ministry of Interior 26 under process and 40 closed, National Accountability Bureau (16 under process and 43 closed), Ministry of Information and Broadcasting (21 under process and 38 closed), Federal Investigation Agency (15 under process and 43 closed), Federal Board of Revenue (23 under process and 31 closed), and inexplicably National Assembly (16 under process and 30 closed); (ii) key reforms remain pending in state-owned entities (SOEs), and as per the report “instead of formulating and implementing a standardized, rule-based framework for SOEs, (it was) was undermined by the creation of a Sovereign Wealth Fund initially granted special rights, though the Government has subsequently indicated its intention to apply the same rules to this entity;” (iii) Special Investment........