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In Focus
Corruption risks across state institutions in Pakistan, says IMF
On 20 November, Dawn reported that the International Monetary Fund (IMF), in its long-awaited Governance and Corruption Diagnostic Assessment (GCDA), identified consistent corruption risks in Pakistan caused by systemic weaknesses across state institutions. The IMF has called for the immediate launch of a 15-point reform agenda to strengthen transparency, fairness and integrity.
What is the GCDA report?
The Governance and Corruption Diagnostic Assessment (GCDA) conducted by the IMF aims to assess corruption vulnerabilities and institutional weaknesses. The GCDA seeks to end preferential treatment for certain influential public sector entities in direct government contracts and for greater transparency in the workings and decision-making of the Special Investment Facilitation Council (SIFC). It also recommends tighter limits on the government’s financial discretion without stronger parliamentary oversight, and streamlining of anti-corruption bodies to reduce overlap and improve effectiveness. The government had delayed publication of the report since August. Its release is a precondition for the IMF Executive Board’s approval of a USD 1.2 billion disbursement expected next month.
What are the key findings of the report?
First, the GCDA pointed out broad, systemic governance weaknesses across state functions. It found the country to be highly exposed to corruption risks due to poor budgeting and fiscal reporting, and weak management of public financial and non-financial assets, especially in capital spending, public procurement, and the governance of state-owned enterprises (SOEs).
Second, it says the tax system is highly complex and opaque and that it faces challenges of limited capacity, weak management and inadequate oversight. The judicial sector is described as organisationally complex and unable to reliably enforce contracts or protect property rights, due to inefficiency, outdated laws and concerns over the integrity of some judges and court personnel.
Third, it recommends ending preferential treatment for SOEs in public procurement, abolishing special direct contracting provisions, and making e-procurement mandatory for all state purchases within 12 months.
Fourth, the IMF finds that these vulnerabilities significantly impact fiscal performance, contributing to a low and declining tax-to-GDP ratio, wide gaps between approved budget and actual spending, and politically skewed discretionary allocations. Indicators reflect that weak control of corruption has negative consequences for spending effectiveness, revenue collection and trust in the legal system.
What does it suggest?
The assessment estimates that Pakistan could increase economic growth by over five to 6.5 per cent in five years if it implements a package of governance reforms, starting within the next three to six months. According to the GCDA: “A unifying theme is the emphasis on increasing transparency and accountability in policy formulation, implementation and monitoring.” It suggests that Pakistan would gain substantially from improving rule-based governance and tackling corruption vulnerabilities, particularly in public finance, business regulation and foreign trade. (Khaleeq Kiani, “IMF highlights corruption risks across state institutions in Pakistan,” Dawn, 20 November 2025)
In Brief
JUDICIARY
The Federal Constitutional Court adopts the Supreme Court Rules 2025 for practice and procedure
On 20 November, Dawn reported that in a full court meeting, the Federal Constitutional Court (FCC) unanimously resolved to adopt the Supreme Court Rules 2025, for its practice and procedure until it frames its own rules. The meeting concluded that every case, appeal, or petition would be heard and disposed of by a bench consisting of at least two judges, nominated by the FCC Chief Justice. Similarly, a bench consisting of no fewer than three judges will hear the appeals arising out of judgments passed by a division bench. It was also decided that members of the bar enrolled as senior advocates of the Supreme Court, advocates of the SC, and advocates-on-record were entitled to appear before the FCC as senior advocates, advocates, and advocates-on-record, respectively, on a provisional basis until further orders. (“Federal Constitutional Court to use apex court rules until it frames its own,” Dawn, 20 November 2025)
Supreme Court judges deliberate response to the 27th Amendment in a full-court meeting with the Chief Justice
On 20 November, Dawn reported that the Supreme Court judges convened at Chief Justice Yahya Afridi’s chambers to deliberate on the status of the SC and the future course of action following the 27th Constitutional Amendment. The Amendment had forced the SC to cede the position as the country’s supreme judicial authority to the newly established FCC. Despite the protests of the judges, the meeting remained silent on the proposal to resign en masse to protest the amendment. Dawn reported that superior judges described the development as “a very sad day.” The judges noted their regret over the resignation of two judges, Justice Mansoor Ali Shah and Justice Athar Minallah, urging that the judiciary must develop a strong institutional response. Responding to the suggestion of sending a formal letter to the government to express their disagreement over the new arrangement, the CJP stated that the judges should have approached him in person, rather than through letters. He also stated that the Supreme Court retained the power of judicial review to assess the constitutionality of legislation, but only after the passage of the law, not before it. Thus, the court cannot stop parliament from making laws. (“Idea of judges’ en masse resignation ‘met with silence’," Dawn, 20 November 2025)
ENERGY
Pakistan plans to build an artificial island to accelerate offshore energy exploration
On 20 November, Dawn reported that Pakistan Petroleum Limited (PPL), a state-owned energy company, is reclaiming land from the sea to create a launchpad to ramp up oil and gas exploration. The decision to reclaim the island builds on Abu Dhabi’s experience, where artificial islands for drilling have been successfully built. A six-foot-high artificial island will be created about 30 kilometres off the coast of Sindh, near Sujawal, for uninterrupted round-the-clock exploration work. The island reclamation will be completed by February, to drill around 25 wells. Exploration work gained momentum after United States President Donald Trump indicated an interest in the country’s massive oil reserves. (“Pakistan to build island to boost oil exploration: report,” Dawn, 20 November 2025)
ECONOMY
Foreign loan inflows jump 33 per cent in the first four months of FY26
On 20 November, Dawn reported that Pakistan has witnessed an increase in foreign loan inflows during July-October 2025-26. A 33.24 per cent increase in foreign loan inflows, amounting to USD 2.293 billion, allowed the government to start the new fiscal year on a positive note. Total inflows from overseas Pakistanis increased to USD 735 million in the first four months of the current year, up from USD 542 million in the same period last year. For the current fiscal year, FY26, the government has set the target for total foreign inflows at USD 19.9 billion, with USD 6.4 billion from both multilateral and bilateral lenders, USD 400 million in international bonds, USD 3.1 billion in foreign commercial loans, USD five billion in time deposits from Saudi Arabia, and USD four billion in SAFE deposits from China. (“Foreign loan inflows surge 33pc in July-Oct,” Dawn, 20 November 2025)
SOCIETY
Karachi set to become the world’s fifth-largest city by 2050
On 20 November, Dawn reported that the United Nations World Urbanisation Prospects 2025 shows Karachi will become the world's fifth-largest city with 33 million residents by 2050. The population density of Karachi would reach 25,000 people per square kilometre, which makes it one of the most crowded cities in the world. The Asian urbanization trend will drive Karachi to surpass Cairo, Tokyo, Guangzhou, Manila and Kolkata for fifth position in global city rankings. The world now has 33 megacities, where only eight existed in 1975, and experts forecast 37 cities will exist by 2050, with Dhaka projected to become the largest city globally. The population of India, China, Nigeria, Pakistan and the United States experienced more than 500 million new urban residents during the last twenty years. (“Karachi to become 5th largest city in world by 2050: UN,” Dawn, 20 November 2025)
SECURITY
Security forces kill 27 militants in KP intelligence operations
On 20 November, Dawn reported that during intelligence-based operations by security personnel, at least 27 militants were killed in different areas of Khyber Pakhtunkhwa. The operation was carried out in the Kurram district’s Manato and Marzai areas, where nearly two dozen terrorists were hiding in a residential area and had planted explosives in the house. However, the military’s media wing has not issued any official statement on developments in Kurram. ("27 militants killed in KP operations,” Dawn, 20 November 2025)
POLITICS
Tensions rise as PML-N, PPP spar over Balochistan CM’s future
On 20 November, Dawn reported that PML-N and PPP, part of the ruling coalition in the Balochistan assembly, are making conflicting claims about the fate of the provincial chief executive. A PML-N senator claimed that Balochistan CM Mir Sarfraz Bugti would be removed from his position in the coming few days, and a new CM would be elected by the PPP. However, the PPP Balochistan president rejected the claim of the PML-N senator and ensured that Bugti enjoyed the full support of all coalition partners. (“PML-N grouse with Balochistan CM Bugti ‘out in the open’,” Dawn, 20 November 2025)
Balochistan assembly orders closed-door briefing on security crisis
On 20 November, Dawn reported that the Speaker of the Balochistan Assembly announced a private meeting for discussion on the security and law and order situation in Balochistan. The decision for a private meeting came after many MPAs expressed grave concerns over deteriorating security in the region. The assembly approved the Balochistan Safe and Environmentally Sound Recycling of Ships Bill. Also, during the assembly session, the Jamaat-i-Islami Balochistan senator highlighted the closure of internet, transport, and highway services, urging the chief minister to address the issues. The issue of gas unavailability causing distress to residents is also being raised by PPPMPA and JUI MPA. (“Balochistan MPAs to get closed-door update on security,” Dawn, 20 November 2025)
EXTERNAL
EU raises concerns ahead of GSP+ review
On 19 November, Dawn reported that EU Ambassador Raimundas Karoblis commented that Pakistan needs to take additional steps to fulfil its obligations under the 27 UN conventions which support GSP+ status before the monitoring team decides its future access to the scheme. The Ambassador listed human rights, labour rights, enforced disappearance, minority defence, women's rights and civilian court use by military forces as the main issues of concern. The Ambassador listed various advantages but stated that present standards do not fulfil requirements, so the upcoming evaluation will determine Pakistan's future trade position. The EU envoys who preceded him have warned about worsening human rights conditions in Pakistan while making it clear that trade benefits depend on Pakistan showing actual progress in reforms. (“Pakistan needs to ‘do more’ on fulfilling GSP Plus conventions ahead of review,” Dawn, 19 November 2025)
INDIA-PAKISTAN
US Panel says Pakistan held tactical edge in May 2025 clash with India
On 19 November, The Express Tribune reported that the US-China Economic and Security Review Commission presented a report to Congress, which demonstrated Pakistan gained strategic superiority during the four-day military confrontation with India in May 2025 because of Chinese military technology deployment. The report shows Pakistan successfully employed HQ-9 air-defence batteries, PL-15 missiles and J-10C fighters to defend against Indian airstrikes, which targeted Punjab and PoK after India launched strikes against these areas following the attack, which Pakistan denied. The assessment revealed Pakistan destroyed seven Indian aircraft without suffering any damage, while China used the conflict to evaluate and promote its defence systems, which they later sold to Islamabad. The commission revealed China provided 82 per cent of Pakistan's military equipment requirements from 2019 to 2023 while using the conflict to showcase Beijing's expanding military power. (“Pakistan held tactical edge in May conflict, says US panel,” The Express Tribune, 20 November 2025)
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