- Global lender, in an attempt to eliminate corruption, has proposed taking stern anti-graft measures in next budget
ISLAMABAD: The IMF has reportedly expressed its grave concern over the federal government’s failure to create a portal as it was bound by an agreement to display the assets of ministers, lawmakers, and bureaucrats through it.
The International Monetary Fund (IMF), in an attempt to eliminate corruption in Pakistan, has proposed taking stern anti-graft measures in the next budget and strictly demanded yet again that the assets of public office-holders should be made public.
According to sources, the government had prepared a pro forma for its officers on the instructions of the global lender. Banks are obliged to take information about assets from government officials while opening their new accounts.
Earlier, the Federal Board of Revenue had started publishing a directory of taxpayers including lawmakers but the step was later discontinued.
A day earlier, the government approved the next fiscal year’s economic growth target at 3.6% and an overambitious inflation target of 12% — meaning Pakistan will witness the third consecutive year of stagflation.
IMF Pressure for Anti-Corruption Measures:
The Washington-based lender has made clear that taking serious anti-graft measures is essential for the next budget. This includes the long-overdue public asset disclosure, which the fund considers crucial for restoring public trust and attracting foreign investment.
The IMF’s concern stems from Pakistan’s long history of corruption, which has undermined economic development and deterred investors. The lack of transparency in asset holdings has been a persistent issue, with the government repeatedly failing to implement effective mechanisms for disclosure.
Stagflation and Economic Uncertainty:
Pakistan is projected to experience its third consecutive year of stagflation, a combination of low economic growth and high inflation. The government has approved a modest 3.6% growth target for the next fiscal year, but even this ambitious goal is contingent on political stability, currency market steadiness, and the timely signing of the IMF bailout package.
The APCC (Annual Plan Coordination Committee) has recognized the pressure on the rupee and foreign exchange reserves due to scheduled external debt repayments. While the government has set an ambitious inflation target of 12%, independent experts predict inflation could reach 19-20% due to upcoming taxation measures and the expected depreciation of the Pakistani rupee.
Political Instability Complicates Economic Recovery:
The APCC meeting acknowledged that even the achievement of these modest economic targets hinges on political stability. This underscores the deep-seated political turmoil plaguing Pakistan, which is a major obstacle to economic recovery.
The current government is facing increasing pressure from opposition parties and public discontent due to the worsening economic situation. The political landscape remains volatile, further complicating the country’s ability to implement the necessary economic reforms.
A Crossroads for Pakistan:
The IMF’s continued pressure for transparency and anti-corruption measures presents a critical opportunity for Pakistan to address these long-standing issues. However, the government’s reluctance to implement such reforms raises concerns about its commitment to tackling corruption and fostering a more transparent environment.
The financial experts emphasized that Pakistan stands at a crossroads and it must address its economic challenges and political instability if it wants to achieve sustainable growth and improve the lives of its citizens. They are of the view that the IMF’s demands offer a path forward, but it remains to be seen whether the Pakistani government will seize this opportunity for meaningful change.
