The International Monetary Fund (IMF) has cautioned that Pakistan remains vulnerable to corruption‑related money‑laundering, with weak accountability mechanisms and frequent political meddling hampering investigations.
The assessment appeared in the Governance and Corruption Diagnostic Report issued by the Ministry of Finance on November 19.
According to a Tribune Express piece, sectors most at risk are banking, real estate, construction, public procurement, and transactions involving politically exposed persons.
The IMF explains that illicit proceeds are frequently concealed through shell companies, abuse of corporate structures and informal money‑remittance channels.
It highlighted that delays in the judiciary, protracted trials and low conviction rates further erode the efficacy of anti‑money‑laundering (AML) enforcement.
While corruption is deeply entrenched, the country’s shifting demographics are reshaping public expectations.
More than 60 % of Pakistan’s 247 million population is under 30, increasingly urban and digitally connected through social media. This younger cohort is less tolerant of corruption and demands greater accountability and improved public services.
The report noted that politicians are beginning to acknowledge the need to tackle corruption to satisfy these expectations.
The Fund recognized Pakistan’s efforts to bolster financial‑sector oversight, including targeted inspections of banks to enforce AML rules, especially concerning the onboarding of politically exposed persons and the filing of suspicious transaction reports.
However, it stressed that high‑profile or politically sensitive cases still face external pressure, which undermines investigative independence and weakens public confidence.
The IMF report pointed out serious gaps in Pakistan’s enforcement system.
It cited that the National Accountability Bureau (NAB) takes roughly four months to initiate a formal inquiry into money‑laundering complaints, due to extensive administrative screening. Many complaints never progress further.
The IMF also highlighted coordination shortcomings among institutions, lax enforcement of preventive measures, and inadequate follow‑through in operational activities.
While Pakistan informed the IMF that it imposed penalties totaling over Rs 944 million on 17 banks during 2023–24 for money‑laundering violations, the IMF raised concerns about selective enforcement, especially when politically connected individuals are involved.
The report added that the Federal Board of Revenue (FBR) struggles to supervise Designated Non‑Financial Businesses and Professions effectively, mainly because it oversees a vast number of entities and has limited inspection staff.
Finally, the IMF noted that key agencies fail to publish detailed statistics on suspicious transactions related to corruption, inspections, investigations, or sanctions, fueling doubts about the fairness and transparency of Pakistan’s AML framework.
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