The Ministry of Finance has rejected claims that new or unexpected conditions have been imposed under the International Monetary Fund’s Extended Fund Facility (EFF), saying the measures outlined in the Memorandum of Economic and Financial Policies are part of a pre-agreed reform agenda.
In a statement, the ministry said no new elements had been introduced into the IMF’s core country policy framework. It explained that Pakistan presented its proposed reform policies to the IMF at the start of the programme, which are being incorporated into the EFF in phases.
“These reforms are essential for economic stability and sustainable growth,” the statement said, adding that the EFF reflects a medium-term reform strategy rather than ad hoc or sudden requirements.
The ministry noted that it is standard practice for each IMF review to include additional steps to help achieve the programme’s agreed final objectives in a gradual manner. Several reforms included in the current framework, it said, are already being implemented by the government.
According to the statement, the publication of asset declarations of public servants has been part of the EFF since May 2024. Following amendments to the Civil Servants Act, 1973, the current structural benchmark represents a logical progression. It added that improving the performance and autonomy of the National Accountability Bureau and strengthening cooperation with other investigative agencies had also been agreed in earlier reviews.
The ministry further said that granting provincial anti-corruption bodies access to financial information is part of anti-money laundering and counter-terrorism financing reforms, which were included in the EFF from the outset.
Highlighting economic indicators, the ministry said government measures to discourage informal channels had contributed to a 26 percent year-on-year increase in remittances in fiscal year 2025, with a further 9.3 percent increase projected for fiscal year 2026.
Other reforms, including development of the local currency bond market, changes in the sugar sector, tax reforms in the Federal Board of Revenue, privatisation of power distribution companies, and regulatory reforms, were described as the government’s own initiatives aligned with EFF objectives.
The statement said a task force led by the federal minister for energy has been formed under the Prime Minister’s Office to propose reforms in the sugar sector after consultations with the provinces.
The ministry concluded that all measures included in the latest MEFP are a natural continuation of the agreed reform programme between Pakistan and the IMF, and that portraying them as sudden or unexpected conditions reflects a misunderstanding of the facts.
