ISLAMABAD – The International Monetary Fund has asked Pakistan to meet six strict conditions to make its sovereign wealth fund fully operational and ensure legal amendments are enacted in line with parliamentary approval.
Officials said the proposed framework places tight restrictions on the fund’s financial powers.
Under these conditions, the fund will not be allowed to borrow money, obtain loans, or raise financing from any source. It will also be barred from issuing guarantees, pledging assets, or extending loans to both public and private sector entities.
In addition, the sovereign wealth fund will be prohibited from participating in public-private partnership projects and from acquiring financial assets or instruments. It will also not be permitted to seek financial assistance from the central bank or any government body.
The IMF has further proposed limits to prevent the fund from securing investments or financial support from financial institutions or state-owned enterprises.
These legal amendments are expected to be adopted as a structural benchmark after the approval of the federal budget for 2026–27.
Meanwhile, the federal government has submitted six proposed amendments to parliament to align existing laws governing state-owned enterprises with the requirements of the State-Owned Enterprises (SOEs) Act.
