Islamabad, Pakistan – Web Desk: The International Monetary Fund has asked Pakistan to implement six stringent conditions to fully operationalize its proposed sovereign wealth fund, as part of broader structural reforms tied to economic stabilization efforts.
According to officials, the conditions significantly restrict the fund’s financial powers. The sovereign wealth fund will not be allowed to borrow funds, seek loans, issue guarantees, or provide lending to public or private entities. It will also be barred from participating in public-private partnership (PPP) projects and from acquiring financial assets or instruments.
Additionally, the IMF has demanded that the fund must not receive any financial support from the central bank or government institutions, nor engage in investments involving financial entities or state-owned enterprises.
These conditions are expected to be incorporated into law as a structural benchmark following the approval of Pakistan’s 2026–27 federal budget, ensuring compliance with IMF program requirements.
Meanwhile, the government has forwarded six amendments to laws governing state-owned enterprises (SOEs) to parliament, aiming to align them fully with the State-Owned Enterprises Act and improve transparency, governance, and fiscal discipline.
Economic experts say the move reflects the IMF’s intent to limit fiscal risks and prevent misuse of sovereign funds, while strengthening oversight of public sector assets.
