The International Monetary Fund has asked Pakistan to strengthen anti-money laundering controls in the real estate sector, improve beneficial ownership disclosures, and step up efforts to detect trade-based money laundering as part of its latest review of the country’s reform program.
The push came as the IMF approved the release of the next $1.1 billion tranche for Pakistan under the Extended Fund Facility.
The lender raised concerns over the low number of suspicious transaction reports being generated by designated non-financial businesses and professions, particularly in the real estate sector, where authorities believe large volumes of undocumented funds may be circulating.
Officials said Pakistan told the IMF it is updating its National Risk Assessment in coordination with the National AML/CFT Authority and is committed to improving oversight of non-financial businesses, including real estate agents, to strengthen preventive controls.
As part of that effort, the government has pledged to improve the accuracy of beneficial ownership information, especially in the corporate registry maintained by the securities regulator, to reduce the risk of legal entities being used to conceal ownership or facilitate illicit transactions.
The IMF also asked Pakistan to improve the monitoring of trade-based money laundering risks. Under the agreed plan, authorities will enhance data sharing across agencies dealing with foreign exchange reporting, import payments, and customs records to better identify suspicious activity.
Officials said the Financial Monitoring Unit will continue sharing financial intelligence with relevant agencies, while tax authorities and regulators are expected to tighten reporting requirements for entities operating in sectors considered vulnerable to money laundering.
The IMF also reviewed risks in the banking sector, including the level of non-performing loans. Pakistani authorities told the lender that the ratio of bad loans had fallen to 6.1 percent by the end of 2025 and that commercial banks had shared plans to further reduce impaired assets.
The State Bank of Pakistan told the IMF it would continue to monitor lenders closely and track implementation of those plans to improve the sector’s financial health.
Officials also informed the IMF that a private bank identified as undercapitalized in March 2025 had undergone a multi-step recapitalization process and is now fully compliant with regulatory capital requirements.
The central bank said it would ensure all banks maintain adequate capital buffers and that prompt supervisory action would be taken if any lender shows signs of falling below required thresholds.
