Islamabad [Pakistan]: The International Monetary Fund (IMF) has imposed 11 new conditionalities on Pakistan for the release of the next tranche under its $7 billion bailout programme, according to Pakistan-based Express Tribune. These measures are part of the IMF’s attempt to address growing macroeconomic and structural vulnerabilities in Pakistan’s economy.
A Staff-Level Report released by the IMF on Saturday highlighted concerns that rising tensions between India and Pakistan could pose additional risks to Pakistan’s fiscal, external, and reform targets under the programme.
🔹 Key New IMF Conditions:
- Approval of Rs 17.6 Trillion Budget for FY2025-26
The government must pass a budget consistent with IMF targets, focusing on fiscal consolidation and reform commitments. - Agriculture Income Tax Implementation
Pakistan must enforce new agricultural income tax laws by June 2025, including:- Operational tax processing platform
- Taxpayer identification and registration
- Public communication campaigns
- Compliance improvement mechanisms
- Governance Action Plan Publication
Based on the IMF’s Governance Diagnostic Assessment, the government must release a comprehensive governance action plan to address structural inefficiencies. - Inflation-Linked Social Support Adjustments
Annual inflation adjustments must be applied to unconditional cash transfer programmes to protect real purchasing power of beneficiaries. - Post-2027 Financial Sector Strategy
Pakistan must outline a long-term financial sector reform roadmap, covering regulatory and institutional frameworks through 2028 and beyond.
🔹 Energy Sector Reforms (4 New Conditions):
While specific technical details were not disclosed, these reforms are expected to target:
- Pricing mechanisms
- Debt management
- Energy sector governance
- Reduction in circular debt
🔹 Trade & Investment Policy Conditions:
- Phase-Out of Incentives in Industrial Zones by 2035
Pakistan must submit a phased withdrawal plan for all fiscal and regulatory incentives offered in Special Technology Zones and other industrial parks. - Liberalisation of Used Vehicle Imports
By end of July 2025, Pakistan must lift all quantitative restrictions on the commercial importation of used motor vehicles—initially for cars less than five years old—to improve affordability and promote trade openness.
🔸 Recent IMF Developments:
- On May 9, the IMF reviewed Pakistan’s Extended Fund Facility (EFF) and approved a $1 billion disbursement.
- It also considered a new Resilience and Sustainability Facility (RSF) worth $1.3 billion.
- To date, Pakistan has received $2 billion of the total $7 billion bailout programme.