Government Introduces New System After IMF Commitment Fulfilled

The government has introduced a new system to protect the economy from financial shocks, marking another IMF commitment fulfilled as part of its reform agenda agreed with the International Monetary Fund, according to officials in Islamabad.

Under the new initiative, the government has launched a monitoring framework to assess financial risks linked to Public Private Partnership (PPP) projects. This system aims to improve transparency and early detection of financial pressures on public finances.

The Ministry of Finance stated that financial exposure from PPP projects has reached Rs472 billion. Under the new rules, both federal and provincial governments will submit detailed PPP project reports every six months to closely track risks and liabilities.\

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Officials revealed that PPP-related liabilities include Rs368 billion in contingent risks and over Rs150 billion due to rising development costs. Financial guarantees alone account for Rs104 billion, while data from 36 PPP projects shows Sindh carries the highest financial risk at Rs335.6 billion.

The ministry explained that PPP risks often do not appear immediately in budget figures, but will now be included in debt and fiscal reports. Risks such as minimum revenue guarantees, interest rates, exchange rate fluctuations, and rising costs will be monitored closely, reinforcing another IMF commitment fulfilled by the government.