The Ministry of Finance on Sunday clarified that Pakistan’s latest reforms under the IMF program are not new conditions but a continuation of its already planned economic agenda.
The Ministry of Finance stated that the measures included in the Memorandum of Economic and Financial Policies (MEFP) are not sudden or new conditions. These reforms have been part of Pakistan’s economic strategy since the start of the IMF’s Extended Fund Facility (EFF) program.
According to the ministry, nothing new has been added to the IMF’s main country policy framework. The government submitted its proposed reform policies at the beginning of the program, which are gradually incorporated into the MEFP for implementation.
Medium-term reform strategy
The EFF reflects a defined medium-term reform strategy, including initiatives already being executed by the government. The IMF review process naturally includes incremental measures to achieve the program’s long-term objectives.
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The ministry highlighted that asset declaration requirements for government employees have been part of the EFF since May 2024. The current structural target aligns with amendments to the Civil Servants Act, 1973, marking a logical progression rather than a new directive.
Similarly, improvements in the performance and independence of the National Accountability Bureau (NAB) and enhanced cooperation with other investigative agencies were agreed upon in previous IMF reviews.
Anti-corruption and remittance reforms
Providing provincial anti-corruption agencies access to financial information is part of the Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) reforms, which have been included in the EFF since its inception.
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The government’s efforts to discourage informal remittance channels have already yielded results. Official remittances grew by 26% in fiscal year 2025 and are projected to increase by 9.3% in fiscal year 2026. Additionally, the State Bank of Pakistan is working to reduce the cost of remittances.
Sectoral reforms
Beyond IMF requirements, the government is pursuing independent reforms in key sectors. These include the development of the local currency bond market, sugar sector reforms, tax reforms in the Federal Board of Revenue (FBR), privatization of power distribution companies, and broader regulatory reforms.
The Prime Minister’s Office has formed a task force, led by the Minister of Energy, to consult provinces and prepare recommendations for the sugar sector reforms. All these measures align with the goals of the EFF program but are driven by the government’s own initiatives.
Phased implementation
The Ministry reiterated that all reforms in the latest MEFP are a natural continuation of Pakistan’s agreed-upon reform agenda. Implemented in phases, these measures are part of a broader strategy to achieve economic stability, not sudden IMF-imposed conditions.
Describing these reforms as unexpected or new, the ministry noted, reflects a misunderstanding of the facts.
