The International Monetary Fund (IMF) has called on Pakistan to bring parliamentarians’ discretionary development schemes under the country’s normal budgetary process, warning that the current practice undermines transparency and drains limited public resources.
According to The Express Tribune, the recommendation comes through the IMF’s Governance and Corruption Diagnosis Assessment report, which the government is expected to release later this month.
Projects Outside the System
At present, parliamentarians’ community-level development schemes are financed outside the Public Sector Development Programme (PSDP), bypassing the rigorous approval checks applied to other projects. For the current fiscal year, Rs70 billion has been earmarked for such initiatives through the Sustainable Development Goals Achievement Programme. The IMF argues this mechanism invites inefficiency and weak oversight.
Curbing Resource Strain
The Fund has also advised Pakistan to restrict new project allocations to no more than 10% of the overall PSDP. By limiting new spending, the government could focus on completing existing projects instead of spreading resources thinly across fresh commitments.
More Predictable Budgeting
To improve fiscal discipline, the IMF wants the Ministry of Finance to publish its Budget Strategy Paper as early as January. The paper should lay out economic indicators and fiscal projections, helping policymakers and parliamentarians plan better. Another key demand is to curb the frequent use of supplementary grants—additional funds doled out mid-year—without parliamentary approval. Instead, the Fund suggests creating a contingency reserve for emergencies.
Procurement Transparency
Beyond budgeting, the IMF has recommended reforms in public procurement. It has urged amendments to the Public Procurement Regulatory Authority (PPRA) law to prevent state-owned firms and charitable organizations from receiving preferential treatment in contracts—a step aimed at closing loopholes often exploited for favoritism.
Broader Push for Accountability
The advice reflects the IMF’s long-standing concern over how Pakistan manages public finances. By keeping spending within parliamentary oversight and standard approval processes, the Fund argues, the government can strengthen accountability and make better use of scarce resources at a time when fiscal pressures are high.
