Pakistan advances IMF-backed reforms for SOEs and bond markets

Pakistan is implementing several structural reforms as part of its ongoing programs with the International Monetary Fund (IMF). The government is under pressure to complete delayed reforms regarding state-owned enterprises (SOEs) to bring them under a unified legal and governance framework established by the State-Owned Enterprises Act, 2023. This includes amending laws for nine additional statutory entities, such as the Port Qasim Authority, Gwadar Port Authority, Karachi Port Trust, State Life Insurance Corporation, National Telecommunication Corporation, and Pakistan Railways. Improving the governance of the Water and Power Development Authority (WAPDA) also remains a priority under the program.

Additionally, Pakistan has unveiled an IMF-backed plan to deepen its local bond market and reduce the dominance of banks, which currently hold approximately 78 percent of government securities. The strategy aims to diversify the investor base by expanding digital investment channels and making it easier for retail investors and foreign buyers to trade Treasury bills and longer-term bonds. Key measures include developing retail channels like InvestPak and enabling bank customers to trade exchange-listed government securities through their banks by December 2027.