IMF Urges Transparency in Pakistan's Public Spending

The International Monetary Fund (IMF) has urged Pakistan to enhance transparency and efficiency in public spending by formalizing development schemes, publishing timely budgets, and revising procurement laws. IMF's report stresses parliamentary involvement and the prioritization of key projects to ensure sustainable economic growth.

The International Monetary Fund (IMF) has stressed the need for Pakistan to improve transparency and accountability in its public spending practices, as detailed in a recent report. The IMF's recommendations include channeling development schemes through formal mechanisms and limiting budget changes without parliamentary oversight, according to reporting by The Express Tribune.

The IMF report underscores the importance of incorporating lawmakers' development schemes into the Public Sector Development Programme (PSDP) to enhance both efficiency and accountability. It also highlights that many local-scale welfare projects should fall within local government responsibilities. The country has allocated PKR 70 billion for such schemes this fiscal year, up from PKR 61 billion last year.

Key recommendations from the IMF include publishing the Budget Strategy Paper well before the budget itself, enhancing parliamentary involvement in budgeting processes, and revising the Public Procurement Regulatory Authority (PPRA) law to ensure fair competition. The IMF's guidance aims to strengthen fiscal governance, urging Pakistan to support long-term economic resilience through strategic reforms.

(With inputs from agencies.)