ISLAMABAD: International Monetary Fund (IMF) has placed significant condition to abolish Pakistan Sovereign Wealth Fund (PSWF) as prerequisite for qualifying for new bailout package, aiming to ensure transparency and accountability in financial affairs of country's seven profitable state-owned firms.

Through an Act of Parliament, government had transferred ownership and assets of these highly profitable enterprises to PSWF, which has now become major point of contention in finalising staff-level agreement with IMF, according to government sources. IMF has immediately sought commitment to abolish Fund and set September 30 deadline to repeal Pakistan Sovereign Wealth Fund Act 2023, which governs operations of PSWF. Highly placed sources revealed that meeting between IMF Mission Chief Nathan Porter and finance ministry officials was held on Monday but remained inconclusive, with IMF steadfast in its demand to abolish Fund. Pakistani authorities have sought more time to provide final response, but it appears government may have no choice but to agree to IMF's demand to bring transparency and accountability in affairs of seven companies. Finance Ministry's spokesman, Qumar Abbasi did not respond to requests for comments. Previous government had enacted Pakistan Sovereign Wealth Fund Act to transfer shares of seven profitable entities and then sell them overseas to raise money. Law states that assets and profits of Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Mari Petroleum, National Bank of Pakistan, Pakistan Development Fund, Government Holdings (Private) Limited, and Neelum-Jhelum Hydropower Company will be shifted to sovereign wealth fund.