ISLAMABAD: Pakistan has accepted a key condition set by the International Monetary Fund (IMF) to conduct a special audit of supplementary grants issued over the past decade, Finance Ministry sources confirmed Saturday. The decision comes after 10 days of technical discussions between Pakistan and the IMF on budget-related reforms and transparency measures.
Read More: IMF calls for stronger NAB, asset disclosure to fight corruption
Officials said Pakistan also agreed to another IMF requirement aimed at limiting the federal government’s discretionary authority to issue supplementary grants. The talks reviewed the digital Public Finance Management Assessment and oversight mechanisms for the digitized PFM master plan. The Auditor General of Pakistan will carry out the audit to ensure stronger transparency and effectiveness in public finance.
Both sides reached a consensus on proposed amendments to the Public Finance Management Act, which are expected to be implemented ahead of the next federal budget. These reforms are part of broader efforts to enhance fiscal discipline and accountability within government spending.
The IMF has scheduled its Executive Board meeting for December 8, during which Pakistan’s case will be considered for the release of $1.2 billion. This includes $1 billion under the ongoing loan program and a $200 million tranche under the Resilience and Sustainability Facility (RSF), aimed at supporting climate resilience initiatives.
Read More: IMF urges Pakistan to meet revenue shortfall amid loan talks
The staff-level agreement reached on October 15 outlined these disbursements and marked a critical step in Pakistan’s ongoing cooperation with the IMF to secure international financing and strengthen public finance management.