The IMF reportedly approved the release of the fourth tranche worth $1.1 billion under Pakistan’s Extended Fund Facility (EFF), but raised concerns over the low number of suspicious transaction reports (STRs) being generated by designated non-financial businesses and professions (DNFBPs), particularly in the real estate sector.
Officials told local media that the IMF believes large amounts of untaxed and illegal money continue to be parked in Pakistan’s property market.
Recently, the Federal Board of Revenue conducted raids on two major housing societies over allegations of concealed sales and undeclared income, though authorities have not yet disclosed the outcome of the investigations.
The IMF was informed that Pakistan had updated its National Risk Assessment and was coordinating with the National AML/CFT Authority to strengthen anti-money laundering and counter-terror financing mechanisms.
Authorities also pledged to improve the accuracy of beneficial ownership information, particularly through the central registry managed by the Securities and Exchange Commission of Pakistan, to prevent misuse of legal entities.
According to officials, the Directorate General of DNFBPs, the FBR and the Financial Monitoring Unit will work to improve suspicious transaction reporting by reforming reporting systems and requiring more entities to formally register.
The IMF also expressed concern over trade-based money laundering. The State Bank of Pakistan had earlier issued a framework in August 2025 directing authorised dealers to better assess and monitor risks linked to suspicious trade transactions.
Pakistani authorities agreed with the IMF to improve inter-agency sharing of customs, forex and import payment data to better detect money laundering risks.
The IMF additionally reviewed Pakistan’s banking sector and questioned the level of non-performing loans (NPLs). Officials informed the lender that the NPL ratio had declined to 6.1% by the end of 2025.
The SBP also told the IMF that one undercapitalised private bank identified in March 2025 had been brought back into compliance through a recapitalisation plan, while regulators would continue monitoring banks to ensure adequate capital buffers.
