Overview
- The Fund describes Pakistan as economically brittle, politically unstable, and chronically reliant on bailouts, citing entrenched corruption and elite capture.
- IMF estimates that a defined reform package could lift GDP by 5–6.5% over five years through stronger procurement, fewer tax exemptions, better judicial performance, and rule‑based oversight.
- The report notes Rs 5.3 trillion in corruption‑related recoveries during 2023–24 but stresses this captures only one element of larger losses.
- Fiscal governance is faulted for a fragmented Single Treasury Account, Rs 9.4 trillion in 2024–25 expenditure overruns, idle government cash in banks, and inactive cash‑management units the IMF wants operational within six months.
- The diagnostic calls for a comprehensive annual report on the Special Investment Facilitation Council and warns SOEs with assets near 48% of GDP create major corruption risks, as the IMF board review could consider a $1.2 billion disbursement.