Islamabad
The International Monetary Fund (IMF) has initiated a two-week technical assistance mission in Pakistan, responding to Islamabad’s plea for reforms to enhance budget management and eradicate a staggering Rs448 billion statistical discrepancy recorded in the first quarter of the current fiscal year.
Led by Nino Tchelishvili from the IMF’s Fiscal Affairs Department, the four-member delegation commenced consultations on Monday with federal and provincial officials, set to conclude on November 21. The mission will dissect Pakistan’s fiscal laws, regulations, and operational norms to pinpoint vulnerabilities, culminating in a comprehensive report aimed at bolstering data integrity.
Government sources revealed the exercise targets fiscal data governance, leveraging the IMF’s framework spanning six pillars: legal structures, data strategies, architecture, storage/privacy protocols, digital tools, organizational setups, and internal controls. Emphasis will be on interoperability to support the rollout of the Government Integrated Financial Management Information System (GIFMIS), fostering data-driven fiscal decisions.
This comes as Pakistan grapples with opaque accounting—federal expenses lacked visibility for Rs93 billion, while provinces showed Rs354 billion in revenue gaps, per the Finance Ministry’s July-September summary. Discrepancies stem from reporting lags between the State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), and Economic Affairs Division, alongside provincial issues like delayed cheque clearances and bank deposit fluctuations (Punjab: Rs209bn; Sindh: Rs47bn; KP: Rs33bn; Balochistan: Rs66bn).
The probe extends to treasury/cash management, tax/non-tax revenue booking (with monthly variances of Rs10-15bn), budget ceilings, procurement systems, and central bank payments. Debt management—criticized for excluding circular debt and pensions—will also face scrutiny, amid debates over reporting standards.
Distinct from program reviews, this advisory could morph into bailout benchmarks, especially with the impending release of the Governance and Corruption Diagnostic Assessment report, a precondition for $1.2 billion in December tranches. Sponsors like the EU, UK, Germany, France, Saudi Arabia, Belgium, and Denmark will review findings.
Experts like former Debt Management DG Abdul Rahman Warriach decry Pakistan’s debt transparency deficits, though current DG Mohsin Chandna defends compliance. The mission underscores persistent World Bank/IMF nudges for systemic upgrades, vital for Pakistan’s $7 billion EFF revival and economic stabilization.