Pakistan Accepts IMF Condition for Special Audit of 10 Years of Supplementary Grants
ISLAMABAD: In a significant move to strengthen financial transparency, Pakistan has accepted an International Monetary Fund (IMF) condition to conduct a special audit of 10 years of supplementary grants, covering expenditures beyond the approved federal budget. The decision marks a key step toward meeting commitments under the IMF’s ongoing loan programme.
According to Ministry of Finance officials, the audit will review grants issued between 2013 and 2023, focusing on expenditures authorized without parliamentary approval or beyond allocated budget ceilings. The IMF has long pushed Pakistan to tighten its fiscal governance and reduce off-budget spending.
Audit Ordered to Improve Fiscal Discipline
Officials told Faiz.tv that the special audit will be conducted by the Auditor General of Pakistan (AGP) with full access to ministry records. The audit aims to:
- Identify irregular or unauthorized expenditure
- Improve transparency in public finance
- Prevent misuse of supplementary funds
- Ensure compliance with budgetary procedures
A senior finance official said:
“This audit is part of broader structural reforms to strengthen accountability and align Pakistan with global fiscal standards.”
IMF Emphasizes Transparency in Public Spending
The IMF has repeatedly raised concerns about Pakistan’s reliance on supplementary grants—often approved late in the fiscal year—to finance unbudgeted projects and administrative expenses. Such practices, the IMF argues, undermine fiscal discipline and obscure the true size of the country’s budget deficit.
The special audit is expected to strengthen Pakistan’s credibility with international lenders and may help unlock the next tranche of IMF funding.
Political & Administrative Reactions
Government sources say some ministries have expressed reservations, fearing scrutiny of past expenditures. However, the finance ministry maintains that the audit is essential for Pakistan’s economic stability.
Economists also support the move, arguing that transparency in public finance is necessary to rebuild trust with donors and investors.
Long Road to Fiscal Reform
Pakistan has already implemented several IMF-backed reforms, including energy pricing adjustments, tax restructuring, and cuts in government spending. The special audit of supplementary grants is viewed as another major step toward long-term fiscal discipline.
The Auditor General’s report is expected to be submitted to the National Assembly and shared with the IMF for review.
Conclusion
Pakistan’s acceptance of the IMF condition for a 10-year special audit reflects its commitment to improving transparency and meeting global fiscal standards. The audit results will play a crucial role in shaping the country’s future economic strategy.
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