Pakistan falls behind on IMF-linked governance reform targets

Pakistan has made limited progress on a set of governance reforms linked to its agreement with the International Monetary Fund (IMF), completing only four of 19 actions that were due by the end of June 2026.

ISLAMABAD: Pakistan has made limited progress on a set of governance reforms linked to its agreement with the International Monetary Fund (IMF), completing only four of 19 actions that were due by the end of June 2026.

According to the latest progress assessment, 12 of the 19 reform measures were only partially implemented, while three were delayed, reflecting the challenges faced by the government in meeting deadlines under its broader governance reform programme.

The 19 measures were assigned to the Economic Governance Systems Committee, one of three government bodies tasked with implementing and monitoring a 142-point reform plan introduced in December 2025 after the IMF assessed governance weaknesses and corruption-related risks in Pakistan.

Under the three-year programme, the committee is overseeing 59 reform actions, with 19 scheduled for completion during the first half of 2026.

Four reforms completed

The government has fully completed four measures so far. These include the establishment of a methodology working group, a review of international practices concerning judicial governance, legal clarifications, and amendments to rules related to asset declarations by civil servants.

The completed measures are intended to strengthen institutional oversight, improve transparency and bring selected governance practices closer to international standards.

However, several other measures covering public procurement, judicial performance, dispute resolution and regulatory transparency have not yet reached full implementation.

Procurement reform awaits approval

One of the major outstanding measures concerns public procurement. The government has drafted amendments to the Public Procurement Rules 2025 aimed at ending preferential treatment for state-owned enterprises in government contracts.

The proposed amendments have already received endorsement from the Prime Minister’s Office. However, the changes are still awaiting consideration by the Cabinet Committee on Legislative Cases and subsequent approval by the federal cabinet.

Due to the delay, the deadline for completing this reform has been extended until December.

The procurement changes are considered significant because greater competition in government contracting is expected to improve transparency and reduce potential advantages enjoyed by state-owned entities.

Delays in audit and technology reforms

The government has also fallen behind schedule on the introduction of revised standard bidding documents. The documents are intended to bring greater consistency and transparency to procurement procedures across government institutions.

Another delayed measure involves the establishment of chief technology officer positions in the office of the Auditor General. The positions are expected to support the modernisation of audit systems and strengthen the use of technology in government financial oversight.

Judicial reforms remain under development

Several measures related to the justice system have also yet to be fully implemented.

These include the development of a framework to address the backlog of cases, the establishment of performance indicators for courts, and the creation of mechanisms to improve the resolution of commercial disputes.

Authorities are also working on a data collection framework for tribunals, which is intended to improve the availability and quality of information used to assess the performance of dispute-resolution institutions.

The reforms are part of a broader effort to make judicial processes more efficient and improve the business environment by reducing delays in commercial cases.

Regulatory transparency remains a challenge

Progress has also been slow in strengthening monitoring of public procurement and improving access to regulatory information.

The government has prepared a procurement monitoring report for fiscal year 2024-25 and is expected to publish it shortly. The report is intended to provide greater visibility into government procurement activities and help identify weaknesses in the existing system.

Meanwhile, work is underway on a machine-readable database containing laws and regulations. The database has been targeted for completion by the end of August and is expected to make legal and regulatory information easier to access and analyse.

Finance Ministry report still pending

Another outstanding requirement is the publication of a six-monthly progress report by the Ministry of Finance under the wider governance reform programme.

The report is intended to provide a formal assessment of progress on the reform agenda and identify areas where implementation has fallen behind schedule.

The uneven progress highlights the difficulties Pakistan faces in translating reform commitments into concrete institutional changes. While some measures have been completed, the large number of partially implemented and delayed actions indicates that several key areas will require accelerated work if the government is to remain on track with its IMF-linked commitments.