IMF structural benchmarks not new conditions, part of ongoing reform agenda: FinMin
PSMU Desk
ISLAMABAD: The Ministry of Finance clarified yesterday that the structural benchmarks outlined under Pakistan’s IMF Extended Fund Facility (EFF) are part of a phased, medium-term reform agenda agreed upon with the Fund, and not new or additional conditions as recently suggested in the media.
The clarification comes in response to commentary describing the 11 benchmarks as “new conditions,” with the Finance Division emphasizing that these measures build on reforms already initiated by the government. The implementation of the benchmarks follows a sequenced, step-by-step approach aimed at achieving the broader policy objectives of the IMF program.
The Ministry further explained that the Memorandum of Economic and Financial Policies (MEFP), finalized after the IMF’s Second Review, supplements the earlier MEFP and reflects this phased approach. This ensures both continuity and the deepening of Pakistan’s ongoing reform agenda, rather than introducing sudden or unplanned measures.
The structural benchmarks span multiple sectors, including fiscal management, governance, financial markets, state-owned enterprises, energy, trade, and corporate regulation. Among the key reforms are efforts to enhance the transparency of civil servants’ asset declarations, amendments to the Civil Servants Act, strengthening the National Accountability Bureau (NAB), and improving coordination with provincial anti-corruption bodies.
The government is also focusing on streamlining remittance flows by removing bottlenecks in cross-border payments, which have already led to a 26% increase in remittances in FY25, with further growth anticipated in FY26. Structural reforms in financial markets are also under way, with a study of the local currency bond market aimed at broadening the investor base.
Regarding the Federal Board of Revenue (FBR), the government is progressing with a comprehensive reform roadmap that includes operationalizing the Tax Policy Office and strengthening compliance risk management. A medium-term tax reform strategy is also in the works to enhance revenue predictability and improve tax administration.
In the energy sector, reforms are being implemented in state-owned enterprises, with plans to privatize selected power distribution companies (DISCOs) and finalize conditions for private sector involvement in HESCO and SEPCO. The government is also working on deregulating the sugar sector and liberalizing trade and commodity markets.
Some benchmarks, including governance action plans and contingency revenue measures, were delayed due to ongoing reform implementation and the recent floods. However, authorities have requested a reset of these benchmarks for future deadlines, asserting that the overall progress remains on track.
In its Second Review report, the IMF noted that Pakistan had met eight of 13 prior benchmarks, including the approval of the FY26 budget in line with program targets, the introduction of a new agricultural income tax, and amendments to enhance asset disclosures for public officials.
The Finance Ministry reiterated that the structural benchmarks are aligned with Pakistan’s own reform priorities and are not externally imposed conditions.
