Islamabad says IMF team in Pakistan for governance review, not judicial oversight

The International Monetary Fund headquarters building is seen during the IMF/World Bank spring meetings in Washington on April 21, 2017. (REUTERS/File)
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Updated 10 February 2025
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Islamabad says IMF team in Pakistan for governance review, not judicial oversight

  • Finance adviser says IMF mission is evaluating corruption vulnerabilities across six core state functions
  • IMF team will engage with law ministry, finance division, financial institutions, and election commission

ISLAMABAD: An International Monetary Fund (IMF) team is currently visiting Pakistan to conduct a Governance and Corruption Diagnostic Assessment (GCDA), a finance ministry official said on Monday, adding the visit has nothing to do with the country’s judicial system or a review of Pakistan’s ongoing $7 billion IMF program.
The statement came a day after the finance ministry said the three-member IMF mission would conduct the governance and corruption assessment to recommend reforms for transparency, institutional strengthening and sustainable growth in the South Asian country.
Pakistan, currently bolstered by the $7 billion IMF facility that was granted in September, is navigating an economic recovery path. IMF bailouts are critical for Pakistan, which narrowly avoided a sovereign default in June 2023 by clinching a last-gasp, $3 billion IMF loan.
The global lender is set to review Pakistan’s progress on the current $7 billion program by March, with the government and central bank expressing confidence about meeting the targets.
“All rumors suggesting that the IMF team is here to evaluate the judicial process or other related matters are baseless and nothing of that sort is happening during this visit,” Khurram Shehzad, an adviser to Finance Minister Muhammad Aurangzeb, told Arab News.
“The purpose of the IMF team’s visit is to assess the governance structure, which falls under the global lender’s mandate for countries under its program.”
Arab News approached the IMF mission currently visiting Pakistan but did not get a reply by the filing of this story.
Shehzad refuted reports suggesting that the IMF team would meet members of the Judicial Commission of Pakistan next week to discuss the process of judges’ appointment.
The reports emerged amid calls from lawyer bodies and opposition to repeal the 26th constitutional amendment, which empowered parliament to pick the country’s top judge and introduced fundamental changes in the appointment of judges in the superior judiciary.
Shehzad said the IMF team’s visit was not sudden, it was rather planned in July 2024 as part of Pakistan’s previous $3 billion Stand-By Arrangement (SBA).
“This visit is unrelated to the six-month review of the current IMF program, which will be conducted by a separate team,” he said. “That team has not yet arrived in Pakistan and is expected [to arrive] by the end of February or the first week of March.”
He said this was not a new development neither exclusive to Pakistan as similar assessments had been conducted in many other countries.
“They are in Pakistan to conduct a Governance and Corruption Diagnostic Assessment (GCDA), focusing on evaluating corruption vulnerabilities across six core state functions, including fiscal governance, central bank governance and operations, financial sector oversight, market regulation, rule of law, and Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT),” the finance adviser said.
The IMF has been offering guidance and technical support for a long time, which has contributed to improved governance by enhancing public sector transparency and accountability, according to the official.
“They followed a process in which they assess a country’s governance structure by meeting regulators and institutions to explore ways to improve it in line with global best practices,” he shared.
Following the analysis, Shehzad said, the IMF team will provide GCDAs with recommendations to systematically address the vulnerabilities.
“They will provide a comprehensive overview of the governance structure, highlighting areas for improvement and suggesting methods to bring that improvement and the report on the IMF team’s assessment will be published by the government in July this year,” he added.
The IMF mission will mainly engage with the Finance Division, Federal Board of Revenue, State Bank of Pakistan, Auditor General of Pakistan, Securities & Exchange Commission of Pakistan, Election Commission of Pakistan, and Ministry of Law & Justice, according to Pakistan’s finance ministry.
Traditionally, the IMF’s main focus has been to encourage countries to correct macroeconomic imbalances, reduce inflation, and undertake key trade, exchange and other market reforms needed to improve efficiency and support sustained economic growth.
“While these remain its main focus in all its member countries, however, the IMF has found that a much broader range of institutional reforms is needed if countries are to establish and maintain private sector confidence and thereby lay the basis for sustained growth,” the ministry said in a statement, adding that the IMF identified that promoting good governance in all its aspects, including ensuring the rule of law, improving the efficiency and accountability of the public sector and tackling corruption, are essential elements of a framework within which economies can prosper.
In 1997, the IMF adopted a policy on how to address economic governance, embodied in the Guidance Note “The Role of the IMF in Governance Issues.” To further strengthen the implementation of this policy, the IMF adopted in 2018 a new Framework for Enhanced Engagement on Governance (Governance Policy) that aims to promote more systematic, effective, candid, and evenhanded engagement with member countries regarding governance vulnerabilities, including corruption, that are critical to macroeconomic performance, according to the finance ministry.
Under this policy and framework, the IMF offers to undertake GCDA with member countries to analyze and recommend actions for addressing corruption vulnerabilities and strengthening integrity and governance in IMF member countries. Since 2018, 20 GCDA reports have been finalized, including those for Sri Lanka, Mauritania, Cameroon, Zambia, and Benin and ten diagnostics are ongoing, with several more under IMF consideration.


Pakistan International Airlines flight lands safely in Lahore with ‘missing wheel’

Updated 12 sec ago
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Pakistan International Airlines flight lands safely in Lahore with ‘missing wheel’

  • Authorities say investigation into the matter is underway
  • PIA faces history of challenges regarding safety of flights

KARACHI: A Pakistan International Airlines (PIA) flight from Karachi to Lahore landed with a missing wheel at its destination, authorities said on Friday, adding that an investigation into the matter was underway.
PIA has faced a history of challenges, particularly regarding the safety and reliability of its flights. In May 2020, one of its planes crashed into a residential area near Karachi’s Jinnah International Airport, killing 97 of the 99 people on board.
The crash led to deep scrutiny of PIA’s safety protocols, with the European Union Aviation Safety Agency (EASA) suspending its authorization to operate in Europe, citing serious safety deficiencies. The ban severely impacted PIA’s international operations, tarnished the airline’s reputation and led to massive financial losses.
According to a PIA statement, PK-306 departed from Karachi to Lahore on Thursday and made a “smooth, uneventful” landing despite a wheel missing from the main landing gear.
“On the walk-around inspection by the captain, it was revealed that one out of the six-wheel assemblies on the main landing gear at the back side was missing,” the airline’s spokesperson, Abdullah Khan, said in the statement.
He added that PIA flight safety teams would submit a report in this regard once the investigation was complete.
“It is worth mentioning that the aircraft is designed to handle these contingencies and that at no point was there any risk posed to the equipment or to the passengers,” Khan said.
The incident comes after EASA lifted the four-year ban on PIA on November 29, 2024, citing significant improvements in safety and regulatory compliance by Pakistan’s Civil Aviation Authority.
PIA welcomed the decision and promptly scheduled flights to European destinations. The first direct flight from Islamabad to Paris took off on January 10, 2025, marking the official resumption of PIA’s European operations.


Pakistan military details rescue operation days after deadly train hijacking by separatists

Updated 8 min 11 sec ago
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Pakistan military details rescue operation days after deadly train hijacking by separatists

  • BLA separatists targeted a passenger train in Pakistan’s southwest earlier this week, 26 passengers and four troops killed
  • Lt. Gen. Ahmad Sharif Chaudhry accuses India of launching information warfare by using AI images of the attack

ISLAMABAD: Pakistan’s military on Friday provided details of its hostage rescue operation after separatist militants hijacked a passenger train in Balochistan earlier this week, holding more than 200 people captive before security forces intervened to secure their release.
The separatist Balochistan Liberation Army (BLA) bombed part of a railway track and stormed the Jaffar Express on Tuesday afternoon in Mushkaaf, a rugged area in the mountainous Bolan range. The hostage crisis was resolved a day later when the armed forces conducted an operation to rescue the captives, killing 33 militants in the process.
Lt. Gen. Ahmad Sharif Chaudhry, the military’s spokesperson, described the operation as “one of the most successful” conducted in a hostage situation.
“Not even a single casualty of hostages took place during this process,” he said at a press conference in Islamabad. “The whole operation was done with extreme expertise.”
Chaudhry said the armed forces executed the mission after a careful assessment of the situation, ensuring the safety of the hostages while eliminating the militants who had positioned suicide bombers near civilians to prolong the standoff.
He informed the militants had killed 26 hostages soon after seizing control of the train, but there were no further casualties among the passengers during the rescue operation. The security forces also lost four soldiers in the whole episode.
During his briefing, the military spokesperson also criticized Indian media for “glorifying” the attack, accusing it of using fabricated content to amplify the BLA’s narrative.

This screengrab, taken from state run Pakistan Television’s live broadcast, shows Pakistan’s military spokesperson, Lt. Gen. Ahmad Sharif Chaudhry, speaking during a press briefing on Balochistan train hijack, in Islamabad on March 14, 2025. (PTV World/Screengrab)

“The Indian media was using videos shared by the internationally recognized terrorist group,” he said, referring to visuals released by the BLA. “They used images generated by artificial intelligence and old videos as well to glorify and promote the attack internationally.”
Chaudhry maintained that the coverage by Indian outlets underscored a broader agenda to destabilize Balochistan and pointed to the case of Indian national Kulbhushan Yadav, whom Pakistan arrested in 2016, accusing him of spying for India’s Research and Analysis Wing.
New Delhi denies the allegations, saying he was kidnapped from Iran and illegally rendered to Pakistan.
The military spokesperson played portions of Yadav’s “confessional video” recorded soon after his arrest, in which he said he was tasked by the Indian authorities with facilitating militant violence in Balochistan.
The military spokesperson also reiterated that BLA militants were in contact with individuals inside Afghanistan, echoing Islamabad’s allegation that Afghan authorities have been backing anti-Pakistan groups, a charge the administration in Kabul denies.
Balochistan, Pakistan’s largest province by land area, has long been the site of a low-level insurgency, with separatist groups accusing the government of exploiting the province’s natural resources while leaving its people in poverty.
Government officials deny the allegation and say they are developing the province through multibillion-dollar projects, including those backed by China.


PM presents Rs2.5 million cheque to struggling Pakistani footballer, promises government job

Updated 14 March 2025
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PM presents Rs2.5 million cheque to struggling Pakistani footballer, promises government job

  • A video of Muhammad Riaz frying popular street snack to make ends meet went viral on social media this month, drawing online criticism
  • PM Shehbaz Sharif calls for a strategy to provide sustainable employment opportunities to athletes representing Pakistan internationally

ISLAMABAD: Prime Minister Shehbaz Sharif has met with Pakistani footballer Muhammad Riaz and handed him Rs2.5 million ($8,916) cheque and promised a government job for him in a federal department of his choice, Sharif’s office said on Friday.
Riaz, who represented Pakistan in the 2018 Asian Games, made headlines after a video of him selling jalebis, a popular street snack, went viral online, with netizens criticizing the government and sports bodies for ignoring the footballer.
Sports athletes in the subcontinent, including Pakistan, usually come from economically disadvantaged backgrounds before becoming household names overnight and attaining financial success.
In his meeting with the footballer, PM Sharif praised his courage and determination, and urged to continue playing football and an active role in promoting the game in the South Asian country.
“Pakistani youth are a valuable asset of the country,” Sharif’s office quoted him as saying. “Providing all kinds of facilities to Pakistani athletes and resources for them to compete at the international level is among the top priorities of the government.”
The prime minister instructed officials to provide Riaz with job in federal department of his choice.
“Steps should be taken to promote sports in the country,” he said. “A strategy should be formulated to provide sustainable employment opportunities to the athletes representing Pakistan at the international level and for their welfare.”
Riaz thanked the prime minister for the financial support and for taking steps for the welfare of players and the promotion of sports, according to Sharif’s office.
The plight of football in Pakistan is a tale of unfulfilled potential, administrative chaos and lack of investment. Despite a passionate fan base and a pool of talented players, the sport has suffered due to mismanagement by governing bodies, political interference and inadequate infrastructure.
The Pakistan Football Federation (PFF) has been marred by internal disputes and FIFA suspensions which have hindered the development of the game at all levels.
On Wednesday, the Pakistan Football League (PFL) also announced a cash prize of Rs1 million ($3,573) and a “prominent position” in the league for Riaz.
The PFL is a franchise league that says it is driven by a UK-based company with foreign investment solely committed to uplifting football from the grassroots to a professional level in Pakistan.


Blast in northwestern Pakistan mosque injures religious party leader, three others

Updated 14 March 2025
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Blast in northwestern Pakistan mosque injures religious party leader, three others

  • Attacks have been escalating in Pakistan’s border regions with Afghanistan in recent months
  • Last month, a suicide bomber killed six worshippers during Friday prayers at an Islamic seminary

PESHAWAR: A blast tore through a mosque on Friday in northwestern Pakistan, police said, injuring a religious party leader and three others, including children.
Abdullah Nadeem, a local leader of the Jamiat Ulema Islam-Fazl (JUI-F) political party, was believed to be the target of the blast and had been hospitalized with serious injures, said Asif Bahadar, a district police chief in South Waziristan. He said two children were among the injured.
It was not immediately clear who was behind the explosion.
Attacks have been escalating in Pakistan’s border regions with Afghanistan in recent months.
Last month, a suicide bomber killed six worshippers during Friday prayers at an Islamic seminary in northwestern Pakistan, known as a historic training ground for the Afghan Taliban.
This week in southwestern Balochistan, separatist militants hijacked a train and held passengers hostage in a day-long standoff with security forces.
Pakistan has vowed to crack down on growing militancy and has said the militants are finding safe haven in neighboring Afghanistan, a charge the ruling Afghan Taliban deny.


KSrelief distributes 50,000 winter relief kits across Pakistan

Updated 14 March 2025
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KSrelief distributes 50,000 winter relief kits across Pakistan

  • The packages included quilts, warms shawls and winter clothing for protection against extreme temperatures
  • Over 300,000 Pakistanis from 52 districts, including in Azad Kashmir and Gilgit Baltistan, received the winter kits

ISLAMABAD: The King Salman Humanitarian Aid and Relief Center (KSrelief) has distributed 50,000 winter relief kits in all four provinces of Pakistan as well as the Gilgit-Baltistan and Azad Kashmir regions, the Saudi charity said on Friday.
These kits were distributed as part of a large-scale humanitarian initiative, launched in January and aimed at assisting communities affected by severe winter conditions and natural disasters across Pakistan.
The Saudi charitable organization distributed the kits in collaboration with Pakistan’s national and provincial disaster management authorities, covering some of the coldest and most vulnerable regions in the country.
“The aid reached 17 districts in Khyber Pakhtunkhwa, 10 in Gilgit-Baltistan, 11 in Balochistan, six in Azad Kashmir, six in Sindh and two in Punjab,” KSrelief said in a statement.
“Each comprehensive winter package included two high-quality polyester quilts, warm shawl kits for men and women, and winter clothing for children and adults, ensuring that families had the necessary protection against extreme temperatures.”
The distribution was carried out in close coordination with the government and it benefitted over 337,079 people, according to the statement.
Saudi Arabia’s KSrelief has implemented more than 200 projects, including emergency relief for natural disasters and initiatives to address food security, health care and education, to improve the lives of vulnerable communities in Pakistan.