Islamabad, Feb 13: The International Monetary Fund (IMF) has emphasized the need for Pakistan to enhance its public finance management system to ensure better oversight of budget expenditures and real-time tracking of development funds. During ongoing discussions with Pakistani officials, the IMF’s technical team highlighted the importance of implementing modern budget monitoring frameworks to improve transparency and efficiency.
At a recent briefing by the Ministry of Finance, officials outlined the country’s current strategy for budget releases and the monitoring mechanism for development projects. In response, the IMF delegation suggested the establishment of a dedicated unit to track project fund disbursements in real-time. This initiative, if implemented, could significantly enhance financial accountability and ensure timely utilization of allocated resources.
According to sources, the IMF and Pakistan’s Finance Division are likely to collaborate on overseeing the disbursement of funds for all development projects. A proposal is also under consideration to halt new project funding until previously allocated resources are fully utilized. This measure aims to prevent financial mismanagement and ensure optimal use of public funds.
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Furthermore, the IMF team has put forward several recommendations for the fiscal year 2025-26 budget, focusing on improving the overall budgetary framework. The delegation has also reviewed Pakistan’s budget formulation process, particularly through the budget call circular, to identify areas for improvement.
These discussions underscore the IMF’s ongoing support for Pakistan’s economic stability, with a strong emphasis on financial discipline, budgetary reforms, and efficient resource allocation. If adopted, these recommendations could help Pakistan strengthen its fiscal management and enhance the effectiveness of development initiatives.
