ISLAMABAD: Finance Minister Muhammad Aurangzeb informed the Senate that the IMF’s Governance and Corruption Diagnostic Assessment report marks a significant step toward strengthening Pakistan’s institutional framework. Speaking during the conclusion of a debate initiated by Senator Kamran Murtaza, he explained that the government had proactively initiated and facilitated the assessment, describing the process as a deliberate attempt to bring structural gaps to light. The report, he said, spans seven critical areas, including judicial oversight and corruption, and identifies core deficiencies that need to be addressed. He viewed the findings as a constructive opportunity for progress, noting that the assessment outlines 15 detailed recommendations to guide institutional reforms in the country.
The finance minister assured lawmakers that the government had already begun working on the recommendations. He mentioned the recently passed legislation requiring public servants to declare their assets as an early example of ongoing reform measures. He emphasized that the government intends to present a comprehensive action plan on institutional reforms to both parliament and the public, and added that similar diagnostic assessments have been conducted for many countries. According to him, the report represents international best practices and provides valuable comparative insights into governance standards across different jurisdictions.
Aurangzeb dismissed concerns raised by some lawmakers regarding delays in the release of the IMF report. Critics had speculated that the findings may have been held back due to sensitive observations, but he clarified that the lengthy timeline was due to the extensive consultation required. The report, he explained, underwent a thorough review process in which feedback was collected from multiple institutions. He noted that in the private sector, the practice of circulating reports for review and adjusting them based on input is standard. He added that the IMF assessment went through a similar extensive cycle, involving around 100 meetings and contributions from more than 30 institutions.
He also clarified that the diagnostic report has no connection to the latest audit findings from the Auditor General of Pakistan nor to a separate report issued by the State Bank of Pakistan. Addressing further points raised in the Senate, the finance minister agreed that Pakistan needs to strengthen governance structures, improve the professional capacity of technical ministries, and enhance public-sector remuneration. These areas, he said, are being examined by the Civil Service Reforms Committee led by Planning and Development Minister Ahsan Iqbal, a committee in which Aurangzeb also participates.
The minister highlighted the government’s increasing focus on digitising the economy, stating that digital systems enhance transparency, efficiency and financial discipline. He encouraged lawmakers to receive a dedicated briefing from the FBR chairman on initiatives aimed at supporting digital transformation, especially in tax administration and financial tracking. Senator Murtaza suggested that the matter be referred to a committee for deeper examination, noting that the IMF report raised essential questions about judicial capacity, governance quality and institutional performance.
Separately, Aurangzeb underscored that climate change has evolved into a direct economic challenge for Pakistan. In a meeting with Jean Bouquot, president of the International Federation of Accountants, he reaffirmed the government’s commitment to sustainable finance, green taxonomy and climate-aligned disclosure frameworks. He stressed the importance of strengthening SMEs by helping them formalise financial reporting, and also highlighted Pakistan’s proactive regulatory stance on digital assets and emerging technologies. According to the minister, new institutional frameworks are being developed to ensure that innovation is integrated into a transparent and compliant economic environment.
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