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IMF GCDA report ‘compromised’ | The Express Tribune
ISLAMABAD:
In scorching criticism of the International Monetary Fund (IMF)’s highly trumpeted Governance and Corruption Diagnostic Assessment (GCDA), an independent think tank has described the report as “analytically strong” but said it compromised on politically sensitive reforms and institutional independence.
The think tank’s report revealed that the IMF compromised on the independence of the National Accountability Bureau (NAB), the Auditor General of Pakistan and oversight of the Special Investment Facilitation Council (SIFC).
The Global Think Tank Network (GTTN) also said that 73% of fiscal consolidation under the IMF programme was the result of placing more tax burden, mostly on the “already-taxed formal firms, salaried individuals, and the less-affluent via petroleum levies and indirect taxation”.
The think tank released its report at the beginning of the IMF mission to Pakistan, which will review implementation of the action plan agreed to address corruption and governance-related vulnerabilities identified in its November 2025 report. However, the GTTN report also highlights compromises that the IMF struck with Pakistan.
The GCDA “is analytically strong and unusually candid”. Yet its omissions are consequential, said the GTTN.
The GCDA’s “enforcement mechanisms are weak, politically sensitive reforms are diluted or deferred, subnational governance is under-examined, and institutional independence is insufficiently secured,” according to the report.
The think tank said that while the IMF achieved fiscal stabilisation, structural reforms were postponed and “stability without reform does not resolve risk; it defers it”.
The GTTN said consistent fiscal consolidation since 2022 had delivered a cumulative primary adjustment of 5.6% of GDP, the largest in Pakistan’s history.
But “73% of this adjustment has come from revenue measures. The burden has fallen disproportionately on already-taxed formal firms, salaried individuals, and the less-affluent via petroleum levies and indirect taxation. One effect of this is to push firms into informality”.
The GTTN added that while already burdened people were overburdened, government expenses kept rising during the past three years. “Overall expenditure by federal and provincial governments has risen by 60% since 2023. Non-interest expenditure has increased by 70%, and personnel-related spending has ballooned from Rs3.7 trillion to Rs5.9 trillion – a 59% increase”, according to the report.
The think tank said the GCDA recognises corruption risks but does not integrate these macro-social consequences into reform design. “Fiscal pain is immediate, yet governance reform is deferred,” it added.
Proposed changes to NAB are confined to a future “review” of its appointment process, without mandating an independent selection committee, fixed non-renewable tenure or structural safeguards to insulate leadership from political influence.
“Although concerns about politicisation are acknowledged, they are not matched by binding institutional redesign,” said the GTTN said.
The GCDA flags the need for a more transparent procedure for key appointments, including the NAB chairman, yet fails to call for widening the pool of candidates beyond the civil service, judiciary and military, which are widely seen as responsible for Pakistan’s current state, according to GTTN.
“The widening of this pool is essential to give a chance to top professionals, academics and other suitably qualified candidates who can bring a fresh and more objective perspective to the fight against corruption”, it added.
Similarly, while weaknesses in audit follow-up are recognised, no enforceable mechanisms are introduced to ensure Auditor General findings result in corrective action. The absence of binding timelines, parliamentary reporting requirements or sanctions for non-compliance leaves a longstanding accountability gap largely intact, said the GTTN.
On the SIFC, the principal recommendation is publication of an annual report, which the government has proposed to issue starting March 2027.
“The GCDA fails to address broader governance concerns such as parliamentary oversight, transparency of concessions, cost-benefit evaluation of projects, or the scope of immunity provisions. Given the Council’s expanding role in economic decision-making, the limited reform requirement is striking”.
The GTTN said provinces account for about 60% of consolidated public expenditure, reflecting fiscal decentralisation, yet the GCDA remains overwhelmingly federal in scope with limited assessment of provincial governance vulnerabilities.
The GCDA provides serious treatment of fiscal governance weaknesses but, the GTTN said, “the most striking empirical evidence drawn from FY15-FY24 budget data points to serious budgetary deviations and malpractices that the GCDA omits”.
Ten out of 40 federal ministries have consistently posted significant ‘overspending’ deviations, with average cumulative overspending during FY15FY24 amounting to Rs210 billion. Five ministries – Energy, Defence, Interior, Cabinet and National Health – accounted for 91% of cumulative overspending.
The report added that the GCDA does not embed anti-money laundering and combating financing of terrorism reforms within a broader accountability ecosystem tied to elite financial disclosure or asset verification.
In Pakistan, where 80% of the population does not use banks, the stringent and mechanical imposition of AML/CFT requirements exacerbates de-banking and can push small and micro businesses into informality, it added.
The report further stated that ensuring an independent judiciary, empowering oversight institutions, creating a truly autonomous parliament, supporting a free press and encouraging a robust civil society are essential. However, the GCDA does not address these foundational horizontal reforms that are critical to tackling corruption.
“Instead, it opts for quick fixes – such as proposing asset declarations by senior state officials, which are considered basic anti-corruption measures,” according to GTTN.
Declarations are limited in coverage and oversight, and no autonomous authority is mandated to conduct regular audits or investigate discrepancies. In practice, politicians and members of the judiciary remain outside a robust and enforceable disclosure framework. While transparency is formally encouraged, deterrence is not institutionally embedded.
However, the GCDA reform agenda remains largely technocratic. It approaches the judiciary as an institution facing administrative constraints rather than as a constitutional body whose independence underpins credible enforcement, said the GTTN.
Issues such as appointment procedures, tenure security and potential executive influence receive limited substantive treatment. The question of ensuring judicial accountability for performance remains largely unexamined, especially given uncertainty over whether audits of judicial finances are conducted, it added.
Business
US justice department drops probe into Fed chairman Jerome Powell
Powell’s term is nearing its end and the US Senate is considering Trump’s nominee for his replacement, Kevin Warsh. A key Republican, Thom Tillis, has withheld his support for Warsh unless the Trump administration would drop its investigation into Powell.
Business
Intel bags big gains! Chipmaker’s shares jump 26% on blockbuster results; how Trump admin benefits – The Times of India
Intel share price soared sharply on Friday after the chipmaker delivered a first-quarter performance that exceeded market expectations. And the win was not just for the chipmaker, but also the whole of US!The stock climbed 26.7% during trading on Friday, marking what could be its strongest single-day gain since 1987. Momentum continued after the closing bell, with shares rising a further 20% in after-hours trading as investors reacted to signs of a sustained turnaround driven by artificial intelligence.Intel reported revenue of $13.58 billion (€11.6bn) for the quarter, ahead of the $12.3 billion (€10.5 bn) forecast and up 7.2% from a year earlier. Adjusted earnings per share came in at $0.29, far exceeding expectations of $0.01.A key contributor to this performance was the company’s Data Centre and AI (DCAI) division, which delivered revenue of $5.05 billion (€4.2bn), up 22.4% year-on-year and well above analyst estimates of $4.41 billion (€3.77bn). The results indicate strong demand for Intel’s Xeon 6 processors and Gaudi 3 AI accelerators, particularly among enterprise clients and cloud service providers.Chief executive Lip-Bu Tan pointed to a broader shift in artificial intelligence usage as a major factor behind the growth. He said, “the next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic.” He added, “This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”The company also issued an upbeat outlook for the second quarter, forecasting revenue in the range of $13.8 billion (€11.8billion) to $14.8 billion (€12.6billion), surpassing investor expectations of $13 billion (€11.1billion).
But how is Washington winning?
The rally has had a direct impact on the US administration’s investment in Intel. In 2025, during a period of severe financial strain for the company, the administration of Donald Trump acquired a 9.9% stake in a move aimed at stabilising the business. The government invested $8.9 billion (€7.8bn) at a share price of $20.47 (€18.01), with $5.7 billion (€5bn) of that amount coming from previously approved but unpaid grants, according to the Euro News.At the time, Intel was facing multi-billion dollar losses and operational challenges, prompting concerns over its viability. As part of the intervention, the company cancelled planned factory projects in Germany and Poland, redirected focus towards US-based manufacturing, and reduced its global workforce by 25%, cutting around 25,000 jobs.Following the latest jump, Intel’s shares are now trading at $81.3 (€71.5), representing an increase of nearly 300% since the government first took its stake. The sharp rise highlights how the company’s improved financial performance has translated into substantial gains for the US administration.
Business
The investment issues Labour must fix before the public can back its bid to join in
On the whole, Britain is not a nation of investors and the government wants that to change.
Following on from Rachel Reeves’ plans last year, the advertising campaign to create more retail investors is underway and with further changes afoot, the overall picture is one of Labour steering savers towards understanding why, and how, they can create better long-term returns with their money.
The cut to the cash ISA limit, however crude and unpopular, is one such upcoming change. We’ve just entered the final year of the £20,000 allowance being able to be put entirely into a cash ISA; as of April 2027, £8,000 of it will be reserved for investing-only. For those who don’t save over that amount annually it’ll make no material difference, but even the existence of the change can be argued is a prod to the consciousness of people to wonder if they should be doing something else entirely.
Then there’s targeted support.
Among industry insiders there is hope this could make a material difference, given time – in essence, those who have significant savings in cash being able to be spoken to by their bank or provider over other options, potentially including investing.
At Innovate Finance this week, a key summit of UK FinTech Week,The Independent heard from a senior executive at one neobank that the average client with them had savings in excess of £15,000 – precisely the sort of consumer who could benefit from targeted support to explain how, over the long term, they might be better off putting a portion of that excess cash into… well, something other than cash, which loses its value over time due to inflation.
Another suggested an uptick in app users branching out from just having current and savings accounts, to other products within their sphere including stocks and shares ISAs – where investing returns will be tax free for consumers.
Economic secretary to the Treasury Lucy Rigby launched the nationwide ad campaign, along with chancellor Ms Reeves, at the London Stock Exchange on Thursday.
“With greater awareness of the benefits of investing, more people will be able to make informed decisions about how to make their savings work harder for them,” Ms Rigby said. “That will mean greater prosperity and financial resilience for households across the country and strengthened domestic capital markets too.”
The aforementioned plans and prospects certainly all align with raising awareness. That is a first step.
But there are greater key issues to deal with.
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The advert campaign with Savvy the squirrel – conversational cab rides, explain-it-all website and more – will hopefully fill some painful gaps in the first instance around British people’s knowledge around the subject. Unlike in the US and several European countries, where investing is fairly commonplace, in the UK it’s not often spoken about, let alone fully understood.
Research from Barclays and their Investment Readiness Index showed this week that over a third of people (34 per cent) say fear of losing money is their main reason for not starting to invest, while nearly a quarter (23 per cent) said they believed there was a chance that a portfolio of well-known global companies could become “totally worthless” within five years.
Barclays’ report added for context that outcome was “an extremely unlikely” one.
But to really change some of those would-be investors’ minds, perhaps the response should have been more blunt. Perhaps the Treasury, the government and the campaign as a whole could stand to be a bit more…direct.
There is, in all probability, next to no chance that such a mix of companies would become worth zero in five years – unless something genuinely catastrophic happens to the world in which case we’ve all got more important issues to deal with than our portfolio performance. Maybe the Barclays report itself could likewise have benefited from feeling more freely able to state as such?
So, yes, financial education is absolutely one part, but so too is the language and understanding and framing of risk for people.
Articles, videos, all the learning activities across the web and within companies to help introduce people to investing – in every one of them you’re liable to find the disclaimer-style warning along the lines of: investments can go up as well as down, you may get back less than you invest and so on. Some find it off-putting to begin with, some barely even notice it.
In the words of the FCA, you must always “give a balanced impression of the benefits and risks of an investment product or service”.
That same pointing-out-of-the-risks wording and tone is another aspect which is being re-evaluated and could be switched up.
Now, while nobody wants that removed or watered down unduly to the point that bad actors or bad products are being pushed on newly introduced people to investing, there is still a misrepresentation of what risk means – it’s not always about you could lose all your money.
And, the reward (in theory) for taking on board risk is the possibility for higher returns, over time, than just cash alone (through interest) would give you.
Industry insiders have long also pointed out that the same – or reverse – warning is not applied to cash savings products: the risk here being you lose buying power over time due to inflation.
So language, as well as education, must remain on the table to improve and perhaps nudge people more forcefully towards a choice which helps them, similarly to reminding them to check employer contributions to their workplace pensions or taking out travel insurance before they fly.

There will still be one remaining gap though, even after people tentatively read the info, breathe in the adverts and eventually follow Savvy the squirrel down a new journey to take the plunge in investing: where are those people starting?
The ad campaign will not direct people to choose a particular platform or product, though many – Barclays, Hargreaves Lansdown, NatWest and more – are sponsoring the campaign and will be placed on the website as a result. But people still have to choose, and that particular analysis paralysis point has already left many ready to take the first steps, but unsure where to place their feet.
There are more new stocks and shares ISA providers available, loads of low-cost platforms as well as established, recognised names to choose from and deciding which suits any given person’s initial investment plan is as much a key decision as parting with their first few pounds in the first place.
It is important, for the long-term wealth of families, that more people start to invest. It is a positive thing that more information is therefore being pushed in front of them, to be able to make that call in an informed fashion.
But the reason it’s all needed in the first place is an overabundance of caution, a generational stepping-away from investing as a run-of-the-mill part of individual money management. Getting Brits back on board might therefore require less, not more, of that gentle approach to remedy the situation.
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