Govt working on 174 IMF-sought tweaks, NA panel told

The government informed the National Assembly Standing Committee on Finance and Revenue that the International Monetary Fund (IMF) is requesting approximately 174 amendments to various laws aimed at enhancing governance within the financial sector, state-owned enterprises, foreign remittances, climate change efforts, and local currency integration.

These amendments are part of two ongoing programs valued at $8.4 billion, which the finance secretary, Imdadullah Bosal, said the government is actively working on. The amendments will be presented to parliament for approval.

The IMF mission is scheduled to commence its review on the 28th; IMF Managing Director Kristalina Georgieva recently commended Pakistan's performance during her meeting with Prime Minister Shehbaz Sharif. Georgieva emphasized the tangible results of the government's economic stabilisation efforts. The government discussed changes to the Sovereign Wealth Fund (SWF) law and remittances with the IMF.

The SWF, which includes major companies like OGDCL and Pakistan State Oil, is under scrutiny for improving governance and financial reporting standards to match those of other state-owned enterprises.

Committee Chairman Naveed Qamar questioned the government's strategy for power distribution companies, particularly the fate of loss-making entities. The committee stressed that economic reforms should be grounded in a clear, transparent, and sustainable strategy, considering their potential impact on consumers, businesses, and productive sectors.

Fiscal consolidation must be accompanied by measures to spur investment, exports, employment, and sustainable economic growth. Committee members stressed that evaluating the IMF program should not solely focus on formal compliance but should also consider whether reforms lead to measurable economic and social outcomes.