ISLAMABAD: An International Monetary Fund (IMF) mission is expected to arrive in Pakistan next month to assess progress under the country’s $7 billion Extended Fund Facility (EFF), with discussions likely to include proposed changes to the legal framework governing the Sovereign Wealth Fund (SWF).
According to reports, the IMF’s fourth EFF review is expected to take place in September, although the exact schedule for the mission has not yet been finalised.
The upcoming talks are expected to examine Pakistan’s progress in meeting various structural and governance-related commitments under the programme. Among the issues likely to come under scrutiny is the proposed Pakistan Sovereign Wealth Fund (Amendment) Bill 2026, which has been introduced in the Senate.
The proposed legislation seeks to strengthen the SWF’s governance framework and introduce additional fiscal safeguards. The amendments would also define the fund’s legal role as a holding company and require SWF-owned state enterprises to follow governance and accountability standards applicable to other state-owned entities.
The proposed changes further call for transparent and competitive processes for procurement and divestment involving SWF assets.
Meanwhile, the government has proposed amendments to laws governing state-owned enterprises (SOEs), with six such amendments submitted to Parliament. Authorities are also working to complete the remaining legislative requirements concerning three SOEs by the end of August.
Several commercial SOEs have already published business plans, statements of corporate intent and financial statements prepared under International Financial Reporting Standards (IFRS). The Central Monitoring Unit, which is now fully staffed, has been tasked with closely monitoring the quality of this reporting.
Work is also underway to include public service obligation agreements for the seven largest SOEs in the federal budget for fiscal year 2026-27.
Governance reforms also on IMF agenda
The IMF mission is also expected to review Pakistan’s implementation of recommendations contained in the Governance and Anti-Corruption Diagnostics (GCD) assessment.
The government has prepared a Prime Minister’s Economic Governance Reform Plan based on key GCD recommendations. The plan includes 15 reform measures, each accompanied by performance indicators, timelines and monitoring mechanisms.
Authorities have also established an institutional structure for implementing the reforms and begun engaging key stakeholders, including civil society organisations, through policy discussions and the publication of progress reports twice a year.
Under the revised Civil Servants (Conduct) Rules, asset declarations of senior federal government officials are expected to be published online by the end of December 2026. Further changes will establish limited exemptions for confidential personal information and introduce a framework for risk-based and timely verification.
The government also plans to amend the National Accountability Bureau (NAB) Ordinance to improve transparency and strengthen the process for appointing the NAB chairman. The amendments are expected to be presented to Parliament, while NAB will publish its investigation and prosecution rules and annual enforcement statistics by the end of January 2027.
In another anti-corruption measure, the Anti-Corruption and AML/CFT Committee is expected to develop a methodology for assessing corruption risks by the end of October 2026. The framework will assist NAB in preparing an action plan to address corruption risks across government institutions.
