Which New Monitoring System Did the Government Introduce to Meet IMF Demands?

The government has taken a major step by introducing a new monitoring system for public-private partnership (PPP) projects. This initiative fulfills a key commitment made to the International Monetary Fund (IMF). The new system is designed to assess and disclose financial risks in PPP contracts, ensuring transparency, accountability, and timely reporting. Under the framework, both the federation and provincial governments are required to submit detailed reports every six months, enhancing visibility into ongoing projects and potential liabilities.

Experience and Implementation
According to official documents, the government’s total financial exposure from PPP projects has reached Rs. 472.3 billion as of December 2025. The monitoring system introduces several key principles:

• Transparency: All projects with fiscal exposure are disclosed using a standard reporting template.

• Consolidation: Federal RMU compiles data from federal and provincial PPP units under the Fiscal Reporting Standard.

• Accountability: Provincial units retain full responsibility for evaluating and managing their projects.

The new National PPP Liabilities Tool provides project-wise summaries, liability breakdowns, and sectoral exposure profiles. This tool helps identify fiscal vulnerabilities, including minimum income guarantees, interest rate risks, and exposure to currency fluctuations. Provinces like Sindh carry the highest risk, with exposure estimated at Rs. 335.6 billion, followed by the federal government and Punjab.

The introduction of this system will prevent sudden fiscal shocks and ensure that PPP liabilities are reflected in official reports. The MediaBites team congratulates the government for taking this crucial step toward financial transparency and fiscal responsibility. By proactively monitoring PPP risks, the government is setting a benchmark for accountability and demonstrating its commitment to sound public financial management. This initiative is expected to improve long-term economic stability and inspire confidence among investors and stakeholders alike.