Pakistan and the IMF
As mentioned earlier, the need for some conditionalities is an important part of the international donor toolkit, and in this case it is the International Monetary Fund (IMF) in Pakistan is using its’ loan as a means to move the agenda forward. Dawn News reported that the IMF, in its long-awaited Governance and Corruption Diagnostic Assessment (GCDA), which is a precondition for the IMF executive board’s approval of a $1.2 billion disbursement next month, estimates that Pakistan could boost economic growth by about 5 to 6.5 per cent over five years. They noted that persistent corruption challenges in Pakistan, driven by systemic weaknesses across state institutions, requires immediate initiation of a 15-point reform agenda to improve transparency, fairness and integrity. Furthermore, they noted that “the IMF and the government agreed that confronting and reducing corruption vulnerabilities was necessary for sustainable reform and that anti-corruption efforts are most successful when they combine initiatives to strengthen governance with initiatives to directly confront corruption and enhance integrity.” This would seem to be an opportunity on the part of Pakistan to address the many corruption issues which exist, tied to weak government agencies, limited public transparency or parliamentary oversight, as well as a myriad of potential corrupt mechanisms.
Why is this important and why should we care? In this context, where IMF is using its prerogatives, is a good example of how international donors can use their influence in a positive way. Of course, the fact that it took an extra few months for the report to be released, indicates a concern on the part of the Pakistani government. The ongoing need for monitoring is key as Pakistan needs to follow the requirements laid out in the assessment report. Obviously, in a more ideal world, Pakistan would move forward on its needed agenda to instill anti-corruption withing its institutions. Realistically, the IMF will help Pakistan move forward and the hope is that the suggested plan will be implemented. Any support is always welcome, and the more successful the actions the better they can be incorporated into other governments’ plans. All positive actions are important and allow for more transparency in government actions.
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