ISLAMABAD: The Ministry of Finance clarified that the ongoing reforms under the IMF Extended Fund Facility (EFF) program are not ‘abrupt’ but a continuation of the previously agreed reform agenda.
According to a ministry statement, the Memorandum of Economic and Financial Policies (MEFP) outlines measures already proposed by the Government of Pakistan at the start of the program. These steps are being implemented gradually as part of the IMF’s review process to achieve long-term economic stability and sustainable growth.
The statement emphasized that the EFF program reflects a medium-term reform strategy, with many reforms already underway. These include the publication of government employees’ asset declarations, structural amendments under the Civil Servants Act 1973, and strengthening of institutions like the National Accountability Bureau (NAB) and other investigative agencies.
Provincial anti-corruption bodies gaining access to financial information is also part of the AML/CFT reforms included in the EFF. As a result of these efforts, remittances grew by 26% in FY2025, with a projected 9.3% increase in FY2026.
Other ongoing reforms aligned with the IMF framework include the development of local currency bond markets, sugar sector reforms, FBR tax reforms, privatization of DISCOs, and broader regulatory improvements. The ministry stated that the recent MEFP measures are a natural progression of the agreed agenda and should not be considered sudden or unexpected conditions.
The government reaffirmed that all reforms under the EFF are transparent, planned, and critical for Pakistan’s economic stability, with phased implementation ensuring consistent progress toward agreed targets.
