IMF wants Pakistan to make 174 legislative changes under ongoing loan programmes

Profit reported that Finance Secretary Imdadullah Bosal briefed the National Assembly Standing Committee on Finance and Revenue on the government's plan to place 174 proposed amendments to various laws before parliament. The changes are sought by the International Monetary Fund under the ongoing $7 billion Extended Fund Facility and $1.4 billion Resilience and Sustainability Facility. Bosal stressed that although the proposals will be presented, their approval remains a matter for parliament alone.

Reforms cover financial-sector governance, state-owned enterprises, remittances and climate-related measures. Changes to the Sovereign Wealth Fund law are under discussion, and that fund spans five blue-chip companies including Oil and Gas Development Company Limited (OGDCL) and Pakistan State Oil (PSO). Governance and financial reporting standards are among the issues being considered, while an IMF staff mission is in Pakistan and formal negotiations on the fourth EFF review and third RSF review are set to begin Monday.

Members wanted firmer deadlines for pending commitments and data on how the changes affect citizens, companies and taxpayers. They also urged that fiscal consolidation go hand in hand with steps that back investment, exports and jobs. Subsidies that had exceeded Rs120 billion for remittances have already been withdrawn, while the committee questioned what would happen to loss-making power distribution companies (Discos) if profitable ones are privatised.