Pakistan moves to fix governance scorecard

September 09, 2026 (MLN): Pakistan has launched work on a comprehensive roadmap to improve its performance on key international governance indicators, as the government seeks to translate recent macroeconomic stabilization into stronger institutional credibility and improved global standing.

Federal Minister for Law and Justice Senator Azam Nazeer Tarar on Tuesday directed officials to identify immediate, medium- and long-term reforms aimed at improving Pakistan’s governance indicators, according to press release. 

The directives came during the first meeting of the Prime Minister’s Committee on Key Governance Indicators, attended by senior federal and provincial officials, including the Secretaries of Finance and Cabinet Division.

The committee was briefed on the relationship between macroeconomic stability, sovereign credit ratings, borrowing costs and governance indicators.

Officials noted that Pakistan’s credit rating has improved over the past two years amid efforts to stabilize the economy. However, the meeting highlighted a key challenge: data used in international credit-rating assessments is generally around two years old, meaning recent economic and institutional improvements may take time to be reflected fully in external assessments.

The government now plans to examine the individual components of governance indicators and understand how Pakistan is assessed against international benchmarks.

Tarar directed officials to review the assessment methodology in detail and identify reforms that are practical, measurable and compatible with Pakistan’s institutional structure.

The committee will also examine governance models adopted by other countries. However, the minister cautioned against mechanically replicating foreign models, directing officials to adapt international and regional best practices to Pakistan’s own institutional and economic circumstances.

A Sub-Committee comprising subject specialists will now undertake detailed work on the governance indicators and submit recommendations and a comprehensive roadmap to the main committee within one week.

The minister has also sought a separate interim report containing measures that can be implemented immediately.

Importantly, the proposed reforms will include clearly defined responsibilities for both federal and provincial governments, potentially placing greater emphasis on implementation and accountability rather than policy formulation alone.

The committee was further directed to propose measures aimed at improving Pakistan’s international standing and country credibility alongside broader governance reforms.

The initiative comes as Pakistan attempts to consolidate macroeconomic gains and improve investor and international institutional confidence. Better governance indicators could ultimately complement improvements in sovereign creditworthiness by strengthening perceptions of institutional effectiveness, policy stability and the government's ability to implement reforms.

The committee's forthcoming roadmap is therefore expected to focus not only on Pakistan's ranking on international governance measures but also on reforms that can produce measurable improvements in institutional performance and credibility.

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