IMF Approves $1.29 Billion Loan for Pakistan Despite "Macro-Critical" Corruption Report

• IMF's "Governance and Corruption Diagnostic Assessment" report labels Pakistan's corruption and weak governance as "macro-critical."
• Despite the damning report, the IMF Executive Board approved a new $1.29 billion loan for Pakistan.
• The report reveals deep-seated corruption impacting economic growth, budget management, and public finance, with FY24-25 overspending of 9.4 trillion PKR.
• Public Sector Development Program faces a 10.7 trillion PKR backlog of incomplete projects, indicating systemic issues.
• Critics question the IMF's decision, arguing loans should be tied to concrete governance reforms, as current aid offers only temporary relief.

Why It Matters: IMF's loan to Pakistan sparks debate as it follows a report detailing "macro-critical" corruption.