Pakistan has agreed to a key condition set by the International Monetary Fund (IMF) to conduct a special audit of supplementary grants issued over the past ten years, Finance Ministry sources confirmed on Saturday.
The 10-day technical discussions between Pakistan and the IMF have concluded, with officials also confirming Pakistan’s acceptance of another IMF requirement aimed at limiting the federal government’s discretionary power to issue supplementary grants.
The IMF’s technical mission arrived in Pakistan on November 11 to review progress on budget-related targets.
Talks focused on reforms in public finance management (PFM) and measures to enhance transparency in the budget process.
Sources said the digital Public Finance Management Assessment was reviewed, and oversight mechanisms for the digitized PFM master plan were discussed.
The Auditor General of Pakistan will now conduct the special audit to strengthen transparency, effectiveness, and accountability in the issuance of supplementary grants.
Both sides also agreed on proposed amendments to the Public Finance Management Act, which are expected to be implemented ahead of the next federal budget.
IMF Executive Board Meeting
The IMF has scheduled its upcoming Executive Board meeting, with Pakistan’s case fixed for December 8.
According to the IMF, the board may approve a total of $1.2 billion for Pakistan, including a $1 billion disbursement under the ongoing loan program.
Additionally, the first tranche of $200 million under the Resilience and Sustainability Facility (RSF) aimed at supporting climate resilience initiatives may also be released during the meeting.
On October 15, the International Monetary Fund (IMF) and Pakistan reached staff-level agreement under which the international lender will provide an additional $1.2 billion to the country.
According to the official statement, the IMF has approved a $1 billion tranche under the ongoing 37-month loan program, along with $200 million for climate resilience initiatives.
