The International Monetary Fund (IMF) has urged Pakistan to grant full autonomy to the office of the Auditor General. The recommendation is part of its recently released Governance and Corruption Diagnostic Assessment, submitted to the Ministry of Finance.
This report follows a detailed review of corruption risks and governance challenges in six core public sectors. It highlights the need for stronger independent oversight to improve transparency and accountability.
The IMF autonomy Auditor General Pakistan recommendation also calls for legal reforms to support this independence. According to the report, giving the Auditor General’s office more authority will help ensure better use of public funds.
In addition to audit-related reforms, the IMF has raised concerns about Pakistan’s budget practices. It has advised the government to stop adjusting supplementary grants without parliamentary approval. The report also recommends that the Finance Ministry improve its overall budgeting process.
The IMF has further directed the Federal Board of Revenue (FBR) to combat corruption and reduce tax system complications. It urged the FBR to address issues like advance taxes, excessive withholding taxes, and special tax regimes. A detailed report on the progress of these reforms is expected by May 2026.
One of the key recommendations is to separate tax policy-making from FBR operations. The IMF suggests that this move would enhance fairness and efficiency in the tax system.
To prepare the report, the IMF engaged with 30 government departments earlier this year. The governance team also met with Pakistan’s Chief Justice in February to discuss judicial reforms.
These measures are part of broader efforts to improve public sector governance and ensure Pakistan remains on track with IMF-supported economic reforms.
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