Pakistan agrees to IMF audit demand as talks conclude

Pakistan has agreed to a fresh round of financial scrutiny as part of its ongoing engagement with the International Monetary Fund, clearing the way for the next stage of support from the lender.

Officials confirmed on Saturday that Islamabad has accepted the IMF’s call for a special audit of supplementary grants issued over the past decade. The review will be carried out by the Auditor General and is meant to strengthen transparency around how previous governments diverted or expanded public spending.

The decision came at the end of ten days of technical discussions between Pakistan and the IMF. The visiting mission arrived on November 11 and spent the week reviewing reforms tied to public finance management, digital systems, and broader oversight of federal spending.

Push for stronger budget controls

Sources familiar with the meetings said the government has also agreed to restrict its own discretionary powers to issue future supplementary grants. Talks covered digital assessments of public finance systems and the monitoring framework for the ongoing PFM digitisation plan.

Both sides have reportedly settled on changes to the Public Finance Management Act. These amendments are expected to be in place before the next federal budget, a move aimed at preventing off-budget spending and improving public disclosure.

Board meeting set for December 8

The IMF has already listed Pakistan’s case for discussion at its Executive Board meeting on December 8. The country is expected to secure approval for around $1.2 billion, which includes a $1 billion disbursement under the existing loan programme.

A separate $200 million tranche under the Resilience and Sustainability Facility may also be released. This portion is linked to climate resilience efforts and is part of the IMF’s wider push to help countries cope with environmental risks.

Pakistan and the IMF had earlier reached a staff-level agreement on October 15. Under that understanding, the lender agreed to extend additional support worth $1.2 billion, combining the regular programme disbursement with dedicated climate funding.

Officials hope the upcoming board meeting will unlock the next flow of funds, giving the government much-needed breathing room as it prepares for another challenging budget cycle.