Negotiations between Pakistan and the International Monetary Fund (IMF) are underway for the fourth review of the $7 billion Extended Fund Facility and the third review of the Resilience and Sustainability Facility.
Sources said the IMF has expressed concern over the government’s failure to meet a fourth deadline for amendments to laws governing state-owned enterprises (SOEs).
The government has now set a fresh deadline for completing the amendments, with the IMF directing authorities to finalise the required legal changes by mid-November, sources said.
IMF seeks changes to SOE laws
According to sources, the IMF has asked Pakistan to align the laws governing various state-owned entities with the central state-owned enterprises law.
The issue is part of a broader set of governance reforms being discussed during the current review. The government has previously acknowledged that the IMF is seeking amendments to a large number of laws covering financial-sector governance, SOEs and other areas.
The government is already in breach of a structural benchmark concerning amendments to the Sovereign Wealth Fund law, which were originally due at the end of March 2026. The proposed changes are aimed at strengthening governance and safeguards for major state-owned entities.
WAPDA governance under discussion
Sources said the IMF delegation also raised concerns over the absence of an effective governance model at the Water and Power Development Authority (WAPDA).
The Fund has demanded reforms to WAPDA’s governance structure as part of the ongoing discussions, sources said.
The IMF review is examining progress on governance and structural reforms alongside Pakistan’s fiscal and economic performance. The mission began formal talks this week and is expected to remain in Pakistan until the first week of October.
NAB chairman appointment process reviewed
The IMF delegation also reviewed progress on establishing a transparent process for appointing the chairman of the National Accountability Bureau (NAB), according to sources.
An amendment to the accountability law is under consideration to make the appointment process more transparent, sources said.
Governance reforms remain a significant component of Pakistan’s IMF programme. Earlier programme commitments included legislation aimed at strengthening NAB’s autonomy and measures to address corruption risks in public institutions.
If the current reviews are completed successfully, Pakistan is expected to become eligible for around $1 billion under the EFF and another $200 million under the RSF.
