The International Monetary Fund (IMF), in its latest technical assistance report, has urged Pakistan to introduce major reforms to the Special Investment Facilitation Council (SIFC), warning that its existing structure and limited transparency could weaken public confidence and hinder efficient economic management. The SIFC was created to accelerate foreign investment and oversee key national projects, but the IMF notes that it functions with broad powers and insufficiently tested accountability mechanisms.
According to the report, the council’s mandate overlaps with the Board of Investment, creating institutional ambiguity and raising concerns regarding the immunity granted to its staff during decision-making processes. The IMF recommends that the SIFC immediately release its first annual report, outlining all investment initiatives it has supported, the incentives and concessions offered—such as tax and regulatory relaxations—and the justification and results of each approved project.
The Fund also calls for clear, formal procedures governing the council’s operations, along with stronger transparency frameworks to ensure adequate oversight. It further questions the necessity of maintaining the SIFC in its current form while the Board of Investment continues to operate, suggesting a review of the council’s legal basis to ensure it does not circumvent established regulatory checks.
These recommendations are part of a wider 15-point reform strategy aimed at addressing longstanding governance deficiencies and corruption risks across Pakistan’s public institutions. The IMF believes that a comprehensive implementation of these reforms, including those related to the SIFC, could significantly improve institutional effectiveness and economic stability.