The ongoing second half-year economic review talks between Pakistan and the International Monetary Fund (IMF) are likely to conclude today, with optimism surrounding the completion of the $7 billion Extended Fund Facility (EFF) review.

However, major differences remain over the release of the much-debated Governance and Corruption Report, officials confirmed.

According to officials from the Ministry of Finance, the talks—ongoing since September 25—have been described as “constructive and positive.” The IMF mission is expected to depart today, after which discussions will continue virtually.

The government anticipates the IMF board’s approval of the third tranche of the EFF program, along with the first tranche under the $1.4 billion Resilience and Sustainability Facility (RSF).

Reforms on tax-free imports, vehicle policies

Sources revealed that several policy adjustments have been agreed upon during the review. These include:

Ending tax-free car import schemes
Termination of baggage and gift schemes
Further tightening of the Transfer of Residence (TR) Scheme

Additionally, the IMF has reportedly agreed to allow commercial imports of five-year-old used vehicles under specific conditions. However, the Fund has directed the government to seek Economic Coordination Committee (ECC) approval for tightening import-related conditions within this month.

Dispute over governance and corruption report

Despite progress in other areas, the Governance and Corruption Report remains a sticking point between Islamabad and the IMF. The report—part of the transparency measures under the current loan program—aims to assess and disclose the performance of governance and anti-corruption mechanisms in Pakistan.

Officials familiar with the matter said the task force responsible for the report has submitted several recommendations, including:

Public disclosure of assets belonging to government officers in grades 17 to 22 and their immediate families.
Amendments to key laws such as the Civil Servants Act, Election Act, NAB Ordinance, and FIA Act.
Enhancing investigative capacity of institutions and launching awareness campaigns against corruption.

The IMF is reportedly insisting on the report’s publication and implementation, while the government has expressed reservations over timing and procedural transparency.