Transparency International report suggests key structural reforms

By Ansar Abbasi
June 05, 2025

Report is prepared by Dr Kaiser Bengali, Kashif Ali, Shamail Adnan Khan and Ms Raima Mehmood

Microphone cables dangle over a logo of Transparency International. — AFP

ISLAMABAD: Transparency International (TI) Pakistan has submitted a comprehensive 67-page Civil Society Governance Diagnostic Assessment (GDA) Report 2025 to the International Monetary Fund (IMF) and the Government of Pakistan, evaluating the country’s governance and anti-corruption landscape while proposing reforms crucial for economic growth.

The report presents wide-ranging recommendations to address structural weaknesses in fiscal governance, public sector accountability and economic regulation.

Key proposals include the removal of ‘tax shelters’ for the agriculture sector and introducing the same tax bars for all taxpayers, empowering parliamentary standing committees in the budget vetting process, empowering Senate to scrutinise and vote on money bills, introduction of “right to first purchase” rule to address grey areas in real estate sector, decentralisation of all federal agencies affected by 18th Amendment, restructuring BISP, introducing oversight mechanism for NAB and other anti-corruption agencies, optimising the governance of state-owned enterprises, breaking the cycle of undocumented economy, adopting Whistleblower Protection Legislation, enacting comprehensive Conflict of Interest (COI) Regulations for Public Officials and promoting transparency through Right to Information.

The report is prepared by Dr Kaiser Bengali, Kashif Ali, Shamail Adnan Khan and Ms Raima Mehmood.

According to the report, Pakistan is currently engaged with the IMF through a 37-month Extended Fund Facility (EFF) worth $7 billion. This programme is designed to support structural reforms aimed at restoring macroeconomic stability, addressing fiscal and external imbalances, and ensuring long-term economic sustainability.

Core priorities under the EFF include fiscal adjustment, improving debt dynamics, achieving exchange rate flexibility, expanding the tax base and reforming state-owned enterprises (SOEs). These reforms are essential for avoiding a cycle of repeated bailouts and placing the economy on a more resilient footing.

The report, it is said, provides an independent, evidence-based contribution grounded in the realities of Pakistan’s governance challenges to the federal and provincial governments, as well as contributes to the ongoing governance and anti-corruption diagnostic assessment being undertaken by the IMF at the request of the Government of Pakistan.

“This report is the result of extensive national consultations, key informant interviews and focus group discussions with stakeholders from civil society, academia, the private sector, and legal and financial experts. It explores structural impediments to reform, exposes institutional gaps and offers practical recommendations to improve fiscal governance, financial transparency, public sector efficiency and rule of law.”

The recommendations of the report include:

Enhancing state capacity through public sector digitisation.

Build the technical and operational capacity of climate governance institutions at both the national and provincial levels to improve policy implementation. Introduce robust procurement procedures for climate-related projects to minimise corruption risks and ensure value for money.

Strengthen the Auditor General of Pakistan (AGP) and other audit bodies to conduct thorough and timely performance audits of climate-related projects. Provide anti-corruption agencies with the necessary resources, autonomy, and expertise to investigate and address corruption in climate finance.

Establish a specialised environmental court to adjudicate climate finance cases and enhance the judicial capacity to handle climate-related issues. Establish a comprehensive legal and regulatory framework for carbon markets to ensure credibility and attract international investment.


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