Islamabad, Jan 3: The federal government has failed to meet the IMF’s deadline of December 2024 for amending the Pakistan Sovereign Wealth Fund Act. The amendments aimed to address governance issues, prevent reliance on State Bank of Pakistan loans, and mandate competitive bidding for asset sales.
Key Issues Highlighted by the IMF:
- Governance Structure Concerns: The IMF raised questions about the fund’s governance and transparency.
- Asset Sales Without Bidding: A lack of competitive bidding for selling state assets.
- Central Bank Funding: Continued dependence on central bank financing.
Current Status:
- Draft amendments are prepared but require further discussion with the IMF.
- Disagreements exist over whether changes need legislative approval or can be implemented via rules.
- Amendments aim to align the fund with the State-Owned Enterprises (SOE) Act and improve revenue accountability.
This is Pakistan’s third missed IMF target, following tax collection shortfalls. The delay could impact the upcoming review of the $7 billion loan program.
