An International Monetary Fund (IMF) technical mission has arrived in Pakistan to review progress on budgetary and public finance reforms. The mission seeks to assess implementation of targets set to improve the budget framework and modernize Public Finance Management (PFM).
According to sources, the IMF seeks to ensure stricter oversight of the federal government’s powers to issue supplementary grants without parliamentary approval. The delegation has recommended that such powers be limited to enhance accountability and transparency.
As part of the reform process, a high-powered committee will be formed to supervise the digitized Public Finance Management Master Plan. This committee will monitor progress and ensure reforms are implemented efficiently.
The IMF team is expected to stay in Pakistan for over a week, providing technical assistance to relevant ministries. Officials from the Finance and Planning Ministries will work closely with the IMF to ensure alignment with the proposed reforms.
Under the new measures, the Finance and Planning Ministries will jointly issue the Budget Call Circular before preparations for the next fiscal year’s budget. This step aims to improve planning and coordination across government departments.
Additionally, the Auditor General of Pakistan will conduct an audit of the supplementary grant mechanism to enhance transparency and prevent misuse of funds. Sources also noted that the Public Finance Management Act may undergo amendments to align with ongoing reforms.
The IMF mission seeks to support Pakistan in strengthening fiscal discipline, improving efficiency in public spending, and ensuring sustainable budget management. Officials emphasized that these reforms are crucial for enhancing government accountability and fostering economic stability.
The mission comes as part of Pakistan’s ongoing engagement with the IMF to implement structural reforms in the budget process and public finance management, ensuring that government resources are used effectively and transparently.
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