‘Not transparent’: IMF flags Pakistan’s economic body over opaque decisions, military role and failed investments

With IMF concerns now public, Pakistan may face pressure to restructure the SIFC, provide legal clarity around its authority, or overhaul its reporting mechanisms ahead of the Fund’s next review.

Pakistan’s bid to revive its troubled economy has been hit by fresh scrutiny from the International Monetary Fund (IMF), which has raised concerns about the transparency, structure and authority of the Special Investment Facilitation Council (SIFC), CNN News18 reported, citing a source familiar with IMF discussions. The council, co-chaired by Army Chief Field Marshal Asim Munir, was created to fast-track foreign investment but has struggled to deliver results.

The IMF has reportedly questioned how decisions are made inside the SIFC and who ultimately exercises control over major economic matters. The insider described to CNN News18 the council’s operations as “not transparent”, raising concerns about unclear mechanisms and lack of accountability.

The Fund has also asked Pakistan to publicly disclose the SIFC’s annual performance, including verifiable investment data. Officials are concerned that because the SIFC lacks constitutional protection, it cannot be held responsible for the economic consequences of its decisions.

Why this matters

IMF pressure on the SIFC raises the stakes for Pakistan’s bailout negotiations. Without visible reforms, transparency, and accountability in the council’s functioning, Islamabad risks deterring potential investors and slowing progress toward future IMF disbursements.

Why now?

The concerns come at a time when the SIFC has failed for three consecutive years to secure any major foreign investment deals, CNN News18 reported. The continued exits of multinationals, from Pfizer and Shell to Uber and Sanofi-Aventis, have intensified the Fund’s scrutiny.

Military influence raises further alarms

Observers told CNN News18 that the growing military influence over economic decision-making is deterring investors already worried about political instability and uneven regulation. An IMF-linked source warned that such a dynamic could 'lead to disaster' since no institution will ultimately accept responsibility for high-risk policies shaped under pressure.

Structural challenges acknowledged

SIFC national coordinator Lt General Sarfraz Ahmed has publicly acknowledged that heavy corporate taxation, additional levies such as the super tax, and currency volatility continue to restrict growth. He has stressed the need for Pakistan to overhaul its investment framework and improve macroeconomic management.

Pakistan’s broader economic context

Since the ouster of former Prime Minister Imran Khan, Pakistan’s economy has battled inflation, depleting reserves, currency weakness and sharply reduced investor confidence. These structural pressures have amplified doubts over the SIFC’s ability to stabilise the investment climate.