Pakistan and the International Monetary Fund are set to begin the fourth review of the country’s $7 billion Extended Fund Facility in September 2026, with the IMF mission expected to visit Pakistan next month.
The IMF mission is expected to examine the government’s proposed amendments to the Sovereign Wealth Fund law, which have been introduced in the Senate as part of efforts to strengthen governance and fiscal safeguards in line with the program’s requirements. The exact dates for the review have not yet been finalized.
The government has proposed amendments to laws governing state-owned enterprises, with six amendments already submitted to Parliament. Authorities are required to make progress on the remaining three state-owned enterprises with dedicated laws by the end of August 2026.
The proposed Sovereign Wealth Fund amendments seek to clarify the fund’s role as a holding company, strengthen its governance and ensure that state owned enterprises under the fund follow the same governance and accountability standards as other state owned enterprises. The amendments also include requirements for transparent and competitive divestment and procurement processes and additional fiscal safeguards.
Most commercial state owned enterprises have also published business plans, statements of corporate intent and financial statements prepared under International Financial Reporting Standards. The Central Monitoring Unit, which is now fully staffed, is expected to closely monitor the quality of this reporting. Work is also underway to include public service obligation agreements for the seven largest state owned enterprises in the fiscal year 2027 budget.
The upcoming IMF review will also cover implementation of the Governance and Anti Corruption Diagnostics Assessment Report. Pakistan has published the Prime Minister’s Economic Governance Reform Plan based on the assessment’s recommendations, containing 15 reform actions with performance indicators, timelines and monitoring mechanisms.
The government has also established an institutional framework to oversee implementation and begun coordination with key stakeholders, including civil society organizations. Revised Civil Servant Conduct Rules are expected to support the online publication of asset declarations by senior federal civil servants by the end of December 2026, alongside measures for limited disclosure of confidential personal information and risk based verification.
Pakistan is also expected to pursue reforms aimed at strengthening the independence and transparency of the National Accountability Bureau.
Amendments to the NAB Ordinance are to be submitted to Parliament to strengthen the appointment process for the NAB chairman, while investigation and prosecution rules and annual enforcement statistics are expected to be published by the end of January 2027.
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