ISLAMABAD: Pakistan’s finance ministry has clarified that the structural benchmarks recently highlighted under Pakistan’s IMF Extended Fund Facility (EFF) are part of a phased, medium-term reform agenda previously agreed with the Fund, and do not constitute new or abrupt conditions.
In a statement on Sunday, the ministry said the measures build on reforms already initiated by the government and are implemented in a sequenced, step-by-step manner to achieve the program’s policy objectives. It emphasized that the Memorandum of Economic and Financial Policies (MEFP) finalized after the EFF’s Second Review supplements the earlier MEFP, ensuring continuity and deepening of Pakistan’s reform agenda.
According to the statement, the benchmarks cover multiple sectors, including fiscal management, governance, financial markets, state-owned enterprises, energy, trade, and corporate regulation.
Key measures include enhancing the transparency of civil servants’ asset declarations, strengthening the operational effectiveness of the National Accountability Bureau, empowering provincial anti-corruption bodies with access to financial intelligence, and improving remittance flows by addressing bottlenecks in cross-border payments.
The ministry also highlighted reforms in financial markets, including a comprehensive study of the local currency bond market to broaden the investor base, as well as a reform roadmap for the Federal Board of Revenue, operationalization of the Tax Policy Office, and preparation of a medium-term (3-5 year) tax strategy to enhance revenue predictability and administration.
On energy and state-owned enterprises, it cited the ongoing privatization of selected power distribution companies, preconditions for private-sector participation in HESCO and SEPCO, and the signing of Public Service Obligation (PSO) agreements with major entities.
In trade and commodity markets, deregulation of the sugar sector aims to reduce price distortions and liberalize operations. At the same time, corporate and regulatory reforms seek to strengthen governance, compliance for unlisted firms, and efficiency in special economic zones. Contingency measures, including a Federal Excise Duty on fertilizer and pesticides, remain part of the program framework.
The ministry noted that the IMF’s Second Review report confirmed eight of 13 prior benchmarks had been met, including approval of the FY26 budget in line with program targets, implementation of the new agricultural income tax, and amendments to improve asset disclosures. Some benchmarks were delayed due to ongoing reforms and recent floods, and the authorities have requested that their deadlines be reset while emphasizing that overall progress remains on track.
The finance ministry concluded that the phased approach ensures reforms are sustainable, sequenced, and aligned with Pakistan’s medium-term economic priorities, reiterating that the EFF’s structural benchmarks support the government’s own reform agenda rather than imposing externally driven conditions.
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