IMF discusses loan with Pakistan amid corruption concerns

The International Monetary Fund (IMF) is in talks with Pakistan about another loan. There are concerns that the government has not done enough to stop corruption. A local engineer has asked the IMF to encourage the government to end these practices this year. One major issue is the use of prize bonds. Corrupt officials often use them to hold illegal cash. Although the current government has introduced a new prize bond scheme that links them to owners' IDs, old prize bonds are still in circulation. The government has not set a deadline for when these old bonds will no longer be valid. Another concern is the high denomination of banknotes, like the Rs. 5000 note. These notes are used for cash bribes and to store untaxed money. Past governments have promised to phase out the Rs. 5000 note, but no one has set a final deadline for it either. The engineer urges the IMF to push the government to announce cut-off dates for old prize bonds and Rs. 5000 notes. This would help reduce corruption and bring unaccounted money into the tax system. To avoid a rush of cash being moved into currencies like the US dollar, the government could impose a minimum tax on the first year's deposits. There could also be amnesty for government employees regarding the source of their cash. These actions would help bring a significant amount of hidden cash into the economy and increase tax revenue. In time, this money could be reinvested in businesses and properties, boosting Pakistan's economic growth. Reducing these easy ways to facilitate cash bribes would also help decrease corruption across the country.