ISLAMABAD: The International Monetary Fund (IMF) has pointed out governance weaknesses in Pakistani state institutions and urged prioritizing a 15-point set of recommendations to address these issues tied to a heightened risk of corruption.
The directions published in the IMF’s Governance and Corruption Diagnostic Assessment (GCDA) estimate that implementing the recommended reforms could raise Pakistan’s gross domestic product (GDP) by 5–6.5 percent over the next five years.
The report, published by Pakistan’s finance ministry on Wednesday, follows an IMF team’s visit to Pakistan last month to help local authorities address budget discrepancies amounting to the tune of Rs448 million ($1.58 million).
The global lender said its recommendations focus on measures critical to addressing governance weaknesses that constrain private sector development, public sector performance, and accountability, and have “significant macro-economic consequences.”
“Indicators reflect weak control of corruption over time with negative consequences for public spending effectiveness, revenue collection, and trust in the legal system,” the report read.
