Pakistan’s economic crisis has once again put the country under the strict scrutiny of the International Monetary Fund (IMF). Ahead of releasing the second installment of its $7 billion loan program, the IMF has issued an ultimatum to the Shahbaz Sharif government — remove the Finance Secretary from the State Bank of Pakistan (SBP) board immediately, or risk jeopardizing the next payout.
According to reports published in The Express Tribune, the IMF has pressed Pakistan to carry out urgent reforms in its central banking system. These include:
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Immediate removal of the Finance Secretary from SBP’s Board of Directors.
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Filling two vacant Deputy Governor posts at the SBP without delay.
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Amending the Banking Companies Ordinance, 1962, to strip the federal government of its power to inspect commercial banks.
Why is the IMF pushing for this?
In 2022, under IMF pressure, Pakistan granted full autonomy to the SBP and revoked the Finance Secretary’s voting rights. However, the secretary still holds a seat on the board. The IMF believes this undermines the independence of Pakistan’s central bank, weakening policy-making and reform execution.
With Pakistan depending heavily on IMF funds for economic survival, compliance is not optional. Each installment — including the upcoming $1 billion tranche — is tied to strict conditions.
What’s Next?
The IMF’s next review mission is expected in the third week of September 2025. If Pakistan fails to meet these demands, the release of funds could be delayed, worsening the country’s fragile financial situation.