ISLAMABAD: In a searing indictment of Pakistan’s governance structure, the International Monetary Fund (IMF) has laid bare the country’s chronic failures in civil service integrity, anti-corruption enforcement, and institutional accountability warning that these systemic weaknesses pose a significant threat to the nation’s financial and administrative stability.
The revelations stem from a comprehensive 12-day visit by an IMF legal mission, led by governance expert Joel Turkewitz, which engaged with nearly 30 government entities. The mission was tasked with finalising the Governance and Corruption Diagnostic Assessment, slated for release in August 2025.
Key IMF Observations:
Politicised Bureaucracy:
The report underscores a pervasive political stranglehold on the civil service, where key positions, including those in state-owned enterprises (SOEs), are filled on political grounds rather than merit. The IMF cited the example of the PML-N government’s reshuffling of boards in 8 out of 10 power distribution companies in 2024, terming such moves as detrimental to administrative performance and transparency.
Broken Accountability Systems:
The Fund flagged the absence of a coherent anti-corruption policy, noting the fragmented roles of NAB, FIA, and provincial anti-corruption departments. It criticised recent amendments to accountability laws that have diluted the National Accountability Bureau’s powers. The Right to Information Act, it noted, is applied selectively, eroding transparency.
Institutional Dysfunction:
Critical institutions like the Auditor General of Pakistan (AGP) and the Competition Commission of Pakistan (CCP) were found severely lacking in enforcement power and operational efficiency. The AGP’s role in safeguarding public funds and CCP’s market oversight have both been undermined, the IMF observed.
Judicial Delays and Short-Termism:
The judicial system remains overburdened with an immense backlog of unresolved cases, the mission reported, contributing to a culture of impunity. Additionally, Pakistan’s policymaking continues to be mired in short-term fixes, with little attention to long-term structural reforms.
The IMF has called for urgent and systemic reforms, advocating for a depoliticised civil service, strengthened institutional safeguards, harmonised anti-corruption mechanisms, and a shift towards long-term governance strategies.
The findings signal a critical juncture for Pakistan, with the IMF’s message clear: without decisive reforms, the nation’s governance rot could spiral into deeper institutional and economic decay.
