ISLAMABAD: The International Monetary Fund (IMF) has called on Pakistan to ensure the full operationalisation of its Sovereign Wealth Fund (SWF) while introducing stringent legal safeguards as part of proposed amendments to existing legislation.
According to official sources, the IMF has laid out six key conditions that must be incorporated into law and approved by Parliament to strengthen oversight and prevent misuse of public assets.
Under the proposed framework, the Sovereign Wealth Fund will be strictly prohibited from engaging in borrowing activities or raising debt in any form. It will also not be allowed to issue guarantees, create mortgages, or extend loans to either public or private sector entities.
In addition, the fund will be barred from participating in public-private partnership (PPP) projects, acquiring any financial instruments or assets, or receiving financial support from the central bank or other government institutions. The IMF has further recommended that the SWF should not obtain investments or assistance from state-owned or financial entities to ensure its independence and fiscal discipline.
Officials said these provisions are expected to be incorporated into law as a structural benchmark following the approval of the federal budget for 2026–27, reflecting the IMF’s push for stronger governance and transparency in state-managed investment vehicles.
Meanwhile, the government has already forwarded six amendments related to the legal framework of state-owned enterprises (SOEs) to Parliament. These changes aim to bring existing laws fully in line with the State-Owned Enterprises (SOEs) Act, further tightening oversight and improving compliance standards across public sector entities.
