IMF urges transparency in Pakistan’s development projects

Pakistan is expected to negotiate a new three-year Extended Fund Facility with the IMF, contingent on Islamabad’s commitment to fiscal reforms

The International Monetary Fund (IMF) has called for greater transparency from Pakistan regarding its Public Sector Development Programme (PSDP), citing concerns over the lack of detailed investment information.

The IMF’s request emphasizes the need for Pakistan’s budget documents to detail the locations and formats of PSDP projects, aiming to enhance the effectiveness of these development initiatives.

In response, Pakistan’s Planning Commission officials have indicated that the finance and planning ministries are working to align documentation with IMF guidelines. This effort aligns with discussions about a new financial agreement between Pakistan and the IMF, as the current one concludes.

Pakistan is expected to negotiate a new three-year Extended Fund Facility with the IMF, contingent on Islamabad’s commitment to fiscal reforms, including budget proposals for FY 2024-25, increasing utility prices, and reducing subsidies. This move is part of broader efforts to stabilize Pakistan’s economy and ensure strategic development planning.