ISLAMABAD: Pakistan faces renewed pressure from the International Monetary Fund (IMF) to deliver long-delayed reforms in state-owned enterprises (SOEs), as the government seeks approval for the next $1 billion tranche of its $7 billion economic programme.
The latest dispute highlights a recurring problem in Pakistan’s relationship with the IMF: authorities repeatedly agree to reforms and deadlines, but implementation is delayed, deadlines are extended and difficult decisions are pushed forward.
During recent review talks, held from September 23 to October 7, IMF officials reportedly made amendment of SOE laws a condition for further progress. Pakistan has already missed several deadlines to bring the laws governing key public enterprises into line with its main SOE legislation. The latest deadline had been August 2026, reported by The Express Tribune.
Government officials said the IMF now wants the required amendments completed before mid-November. If an agreement is reached, the IMF board could consider the next $1 billion tranche later in November.
The delays come despite growing financial risks from state owned companies. According to figures disclosed by Pakistan’s Finance Ministry, SOE public debt, excluding contingent liabilities, reached a record Rs10.1 trillion by December last year. The figure was reportedly Rs7.1 trillion, or 242%, higher than previously reported by the central bank.
Pakistan has sent amendments covering several laws to parliament, while further changes are expected for institutions including Port Qasim Authority, Gwadar Port Authority, Karachi Port Trust, State Life Insurance Corporation, National Bank of Pakistan, National Telecommunication Corporation and Pakistan Railways.
The IMF has also raised concerns over delays involving the Sovereign Wealth Act and other reform commitments. The repeated failure to meet agreed targets has increasingly become a central feature of the programme.
Critics argue that the government has been much quicker to impose the costs of economic adjustment on citizens than to implement politically difficult structural reforms. Taxpayers, salaried workers and businesses have faced higher costs and tighter fiscal policies, while reforms involving powerful economic interests have progressed slowly.
Public frustration has also grown as poverty and economic insecurity remain widespread. The World Bank has reported that Pakistan accounts for a large share of the poor population in the Middle East, North Africa, Afghanistan and Pakistan region. Years of inflation, reduced purchasing power and economic adjustment have placed additional pressure on vulnerable households.
Allegations of corruption, preferential treatment and weak governance in public institutions have further complicated the reform debate. While such allegations vary by institution and require independent investigation, persistent concerns over transparency have weakened public confidence in government economic management.
At the same time, the IMF itself faces questions over its approach to Pakistan. Some Pakistanis increasingly question why governments and politically influential groups appear able to negotiate repeated extensions and exemptions, while ordinary citizens continue to bear the burden of adjustment. These perceptions risk damaging the Fund’s credibility even when its economic concerns are widely acknowledged.
The central challenge for Pakistan is therefore no longer simply securing another IMF tranche. It is demonstrating that promises made to international lenders can be translated into lasting reforms at home, reforms that improve governance, reduce waste and corruption, strengthen public institutions and protect citizens from the harshest effects of economic adjustment.
