Pakistan is facing renewed pressure from the International Monetary Fund (IMF) to accelerate reforms aimed at bringing state-owned enterprises (SOEs) under a unified legal and governance framework.
The reforms have become an important part of Pakistan’s ongoing IMF programme, with several deadlines already delayed. IMF programme documents show that amendments covering statutory SOEs and the Sovereign Wealth Fund remain part of the reform agenda.
The government is required to bring the remaining SOE-related laws in line with the State-Owned Enterprises Act, 2023. The reform process is intended to strengthen governance, improve transparency and reduce the fiscal risks associated with state-owned entities.
Deadlines for SOE Law Amendments
Under the IMF programme, Pakistan had committed to amending the laws of additional statutory SOEs so they comply with the broader SOE legal framework.
The IMF’s latest available programme documentation shows that amendments covering nine additional statutory SOEs were still in progress after the earlier deadline. The reforms are designed to ensure that these entities operate under governance standards established by the 2023 SOE Act and related policy.
The legislation covers major public-sector organizations, including Port Qasim Authority, Gwadar Port Authority, Karachi Port Trust, State Life Insurance Corporation, National Telecommunication Corporation and Pakistan Railways.
The government had previously submitted several amendments to Parliament, while legislation covering the remaining entities continued through the approval process.
WAPDA Governance Remains an Issue
The governance of the Water and Power Development Authority (WAPDA) is another issue that has received attention under the IMF programme.
Pakistan had previously sought special treatment for WAPDA because of its strategic and essential functions. However, the broader reform framework has continued to emphasize improved governance and financial management across state-owned entities.
The IMF has repeatedly identified SOE reforms as an important component of efforts to reduce inefficiencies, improve public services and limit the financial burden on the government.
The IMF’s April 2026 review noted that bringing SOEs under the legal framework and strengthening governance would be important for reducing fiscal liabilities and improving the performance of public-sector entities.
Sovereign Wealth Fund Reforms
The Sovereign Wealth Fund (SWF) is another major part of the reform agenda.
Pakistan has been working on amendments to the SWF Act to clarify the fund’s legal status, governance structure and relationship with companies under its ownership.
The IMF has called for SWF-owned SOEs to remain subject to the same governance and accountability standards applicable to other SOEs. Proposed changes would also establish clearer safeguards for the fund’s operations and define its role primarily as a holding entity.
The proposed framework also includes requirements for transparent and competitive procedures for divestment and procurement.
Another proposed change concerns the treatment of revenues generated by the SWF and its sub-funds. Under the framework described in IMF programme documents, revenues would be provided directly to the government rather than being retained by the fund, while funding for investments would be handled through the federal budgetary process.
NAB Appointment Process Also Under Review
The IMF programme also includes governance reforms involving the National Accountability Bureau (NAB).
Pakistan has committed to submitting amendments to the NAB Ordinance to Parliament aimed at strengthening transparency in the appointment process for the NAB chairman.
The proposed framework includes predetermined qualification criteria, a merit-based and competitive selection process and a broader stakeholder committee for the recruitment process.
The programme also calls for publication of NAB’s investigation and prosecution rules, along with annual statistics covering investigations, prosecutions and convictions related to corruption offences.
The deadline for submitting these amendments is set for January 2027 under the latest programme framework.
Corruption Risk Assessment
Another governance commitment involves identifying and addressing corruption risks within government institutions.
According to the IMF programme documents, the National Accountability Bureau has been designated to lead the development of an action plan addressing corruption vulnerabilities in government departments identified as having higher risks.
The programme calls for a methodology to assess and prioritize corruption risks, along with procedures for reporting and reviewing the results.
The revised target for this work is end-October 2026.
The objective is to use the assessment to develop measures that can reduce corruption vulnerabilities within selected public-sector organizations.
Reform Progress Remains Under Monitoring
The IMF has continued to identify SOE governance as a central component of Pakistan’s structural reform programme.
In its April 2026 review, the Fund noted that Pakistan had sent amendments covering six SOE-specific laws to Parliament and was working on the remaining legislation. The review also recorded the SWF legal reforms as an area where progress was still required.
The IMF has also emphasized implementation of the existing SOE governance framework, including business plans, statements of corporate intent, financial reporting and independent boards for commercial SOEs.
Pakistan’s Finance Division has separately continued monitoring the performance and governance of federal SOEs. In September 2026, the Cabinet Committee on State-Owned Enterprises reviewed the biannual performance of federal SOEs and emphasized stronger governance, transparency and financial discipline.
IMF Programme Remains Linked to Reform Progress
The SOE reforms form part of Pakistan’s broader commitments under the IMF’s $7 billion Extended Fund Facility.
The IMF’s latest published review states that the programme focuses on strengthening public finances, improving competition and productivity, reforming SOEs, improving public services and addressing governance and corruption risks.
For Pakistan, completing the outstanding legislative changes will therefore be important not only for improving the legal framework governing state-owned entities but also for maintaining momentum on the wider IMF reform programme.
The government is expected to continue working on the pending legislation and related governance measures as it moves toward the next programme review.
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