ISLAMABAD, Dec 11: The International Monetary Fund believes that the present government must have a strong political will to sustain the ongoing reform agenda relating to devolution, civil service, tax policy and public financial management.

Sources in multilateral agencies said here on Wednesday that IMF was very much concerned whether the present government will be able to implement reforms initiated by President Gen Pervez Musharraf.

The new government, sources said, was being expected to fulfil all the conditionalities attached to three years $1.3 billion Poverty Reduction Growth Facility.

Pakistan has already acquired four instalments of the PRGF and fears were being expressed that remaining tranches could be withheld in case the new government continued what was termed “relaxing the conditionalities on its own”.

The sources said that the federal cabinet’s Tuesday decision of reducing electricity prices by paisa 12 per unit did not go well with the donor agencies.

The new government was also being expected by the IMF to continue improving governance as was undertaken by President Musharraf three years ago. “We had been extended assurances from the highest level that reform programme will continue but this recent reduction in power tariff is a matter of concern”, said a source. He said the issue was likely to be taken up with the new government shortly.

The IMF was also calling for taking specific additional steps for reforming the country’s police and judiciary under an ADB programme.

The new government, sources said, was also being expected to implement the recommendations of Transparency International to reduce corruption. The level of corruption, they said, has significantly reduced at the top levels of the government but it still existed on the lower level.