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Islamabad, December 27 (ANI):
Pakistan’s weak governance framework is significantly damaging its economy, eroding public trust, and discouraging investor confidence, according to a detailed analytical report released by the Institute of Cost and Management Accountants of Pakistan (ICMA). The report calls for urgent, coordinated, and practical governance reforms to stabilise the country’s economic future, as reported by The Express Tribune.
IMF Diagnostic Highlights Deep Governance Weaknesses
The ICMA report is based on the International Monetary Fund’s (IMF) governance and corruption diagnostic, converting it into a clear reform roadmap. It highlights serious vulnerabilities in Pakistan’s key state functions, including:
- Budget and fiscal management
- Revenue administration
- Market and financial sector regulation
- Anti-money laundering systems
- Judicial efficiency and rule of law
According to the report, these systemic weaknesses are directly undermining economic growth, institutional credibility, and long-term development.
32 Priority Reform Areas Identified
Building on the IMF’s findings, ICMA has identified 32 priority reform areas, shifting the focus from diagnosis to practical implementation. The reforms span fiscal oversight, taxation, public sector governance, anti-corruption mechanisms, judiciary reforms, and digital governance.
Fiscal Oversight at the Core of Reform Agenda
Fiscal governance is identified as the cornerstone of economic reform. The report notes that frequent budget revisions without effective parliamentary oversight have weakened fiscal discipline.
Key recommendations include:
- Establishing an independent Parliamentary Budget Office
- Conducting public hearings on major budget changes
- Strengthening external audits
- Introducing real-time digital budget tracking to improve transparency and accountability
Tax System Reforms to Boost Revenue and Compliance
The report describes Pakistan’s tax system as complex, fragmented, and unpredictable, discouraging compliance and limiting revenue growth.
To address this, ICMA recommends:
-amesh providing for the creation of a Revenue Intelligence Unit within the Federal Board of Revenue (FBR)
- Use of data integration and risk-based analytics to curb tax evasion
- Transforming the Tax Policy Office into a Tax Reform and Simplification Unit to reduce exemptions and simplify laws
State-Owned Enterprises a Major Fiscal Risk
State-owned enterprises (SOEs) are highlighted as a major drain on public finances due to weak oversight, political interference, and incomplete financial reporting.
The report proposes:
- A dedicated SOE Performance and Oversight Unit under the Ministry of Finance
- Early risk detection mechanisms
- Professional training for SOE boards and management to improve governance standards
Procurement and Public Investment Need Strong Monitoring
ICMA flags persistent delays, cost overruns, and weak monitoring in public investment projects.
Recommended measures include:
- Establishing an independent Public Investment Monitoring Unit
- Transparent reporting to parliament and the public
- Creating an analytics team within the Public Procurement Regulatory Authority (PPRA) to detect irregularities and track supplier performance
Anti-Corruption Reforms and Better Coordination
The report highlights fragmented anti-corruption efforts across federal and provincial agencies.
Key recommendations include:
- Formation of a National Anti-Corruption Coordination Council
- Improved intelligence sharing and joint investigations
- Strengthening expertise in financial forensics, digital investigations, and money laundering cases to improve conviction rates
Judicial Reforms Critical for Business Confidence
Judicial inefficiency is cited as a major barrier to economic growth and investor trust.
The report recommends:
- Specialised commercial benches
- Expanded digital case management systems
- Performance monitoring of courts
- Greater use of alternative dispute resolution (ADR) mechanisms
Digital Governance as a Game Changer
Digital governance is presented as a cross-cutting reform priority. The report calls for:
- Full integration of NADRA’s digital identity system with public services
- Creation of a national data exchange layer
- Strong ethics frameworks, whistleblower protection, and transparent asset declarations
Political Will Key to Successful Implementation
The ICMA report concludes that political will, institutional coordination, and sustained capacity building are essential for reform success. It urges close collaboration between the government, IMF, regulators, civil society, and professionals.
Effective implementation of the proposed reforms, the report argues, could help Pakistan curb corruption, strengthen state institutions, restore investor confidence, and achieve sustainable economic growth.
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