- The talks mainly focused on economic reforms and fiscal stability.
- 2 car import plans rejected; Rules on transfer of residence were tightened.
- Second review of $7 billion EFF, first tranche of $400 million RSF pending completion
Pakistan and the International Monetary Fund (IMF) have made significant progress towards a staff-level agreement on key economic reviews, the fund said on Thursday, following detailed discussions on fiscal reforms and financial stability measures.
An IMF team visited Karachi and Islamabad from September 24 to October 8, 2025 for talks on the second review of the Extended Fund Facility (EFS) and the first review under the Sustainability and Resilience Facility.
Officials said the talks focused on assessing Pakistan’s ongoing economic reforms and steps needed to strengthen fiscal stability and sustainability.
Pakistan and the IMF were scheduled to conclude review talks on Wednesday to complete the second review under the $7 billion Extended Fund Facility (ESAF) and the first tranche of $400 million under the $1.4 billion Resilience and Sustainability Fund (RSF).
The IMF has set a deadline to obtain approval from the Cabinet Economic Coordination Committee (ECC) for the abolition of two plans and the tightening of the third within the current month.
Regarding the tariff rationalization plan, both sides agreed that the two schemes under the baggage rules and the freebie scheme for car imports would be abolished. For the third plan, Transfer of Residence, vehicles will only be imported from a country where the person has stayed for at least one year, and misuse of this plan will be limited.
An official commented that all vehicles, whether from Japan or the United Kingdom, are imported first to Dubai and then to Pakistan, so misuse of imported cars should be limited.
Pakistan and the IMF are still working to reach a consensus on the release of the GCD assessment report, which remains a bone of contention between the two sides. According to internal sources, the government created a working group to conduct a detailed review of the vague anti-corruption framework and shared it with the IMF. The task force recommended that the FBR notify the draft rules on “Declaration of Assets of Public Servants Serving in Basic Pay Scale 17-22 and Their Spouses”.
It also recommended amendments to the Public Servants Act 1973 to allow publication of the assets and liabilities of public servants; introduce amendments to the Electoral Law to require non-elected advisors and special assistants to the Prime Minister to submit their declaration of assets and liabilities; and make necessary amendments in the NAB Ordinance and the FIA Act to ensure a clear definition of the mandate, prepare a joint list of violations and establish coordination mechanisms between the two agencies to work harmoniously on violations over which both have jurisdiction.
Other recommendations include providing training on jurisdictional boundaries to NAB, FIA and Provincial Anti-Corruption Establishments (ACE) officials; make arrangements to repatriate FIA investigating officers stationed at airports to process immigration and assign that responsibility to another force; and invest in technology, capacity development and training of FIA, NAB and ACE provincial investigators to bring them at par with their regional counterparts.
Additionally, the task force recommended conducting awareness campaigns to instil a culture of integrity among officials and educate the public on their right to request disclosure of public information under the Right to Information Act and on the regulatory framework for reporting corrupt practices; make provisions for appointment of advocates through open advertisement based on specific expertise to ensure quality prosecution and for appointment of independent members of the legal fraternity in special courts with judicial appointments; and empower Provincial Anti-Corruption Establishments to handle money laundering cases at the provincial level.
The recommendations also include the establishment of a central coordination forum to provide investigative assistance, forensic analysis, intelligence sharing and address jurisdictional issues; ensure that chief internal auditors are appointed within ministries and divisions as required by the Public Finance Management Law; and ensure strict compliance with the State-Owned Enterprises (Governance and Operations) Act 2023, and that government entities are managed in accordance with Article 36 of the Public Finance Management Act 2019.
