The International Monetary Fund (IMF) has placed 11 additional conditions on Pakistan as part of its $7 billion financial assistance package, bringing the total number of structural benchmarks and reform requirements to 50.
The new measures come as the global lender highlights rising tensions with India as a serious threat to Islamabad’s fiscal and reform agenda.
According to the Staff Level Report released on Saturday, the IMF cited the deteriorating relationship between India and Pakistan in recent weeks as a ‘major risk’ that could impact macroeconomic stability, external balances, and the implementation of critical reform programmes.
Despite this, the financial markets have remained relatively steady, with only moderate reactions seen in stock performance and debt spreads.
Among the new conditions is the approval of a Rs 17.6 lakh crore federal budget for the upcoming fiscal year, which includes a Rs 6.6 lakh crore deficit and Rs 1.07 lakh crore in development spending.
Defence expenditure, projected by the IMF at Rs 2.414 lakh crore, has reportedly been increased by Pakistan’s government to over Rs 2.5 lakh crore – an 18% hike linked to rising security concerns following recent India-related tensions.
The IMF has also demanded parliamentary approval of the 2026 fiscal budget by June 2025, aligning with the programme’s targets.
Provinces must also implement new agriculture income tax laws, including the creation of platforms for tax return processing and compliance monitoring.
A major chunk of the new conditions concerns energy sector reforms.
The government must rebase annual electricity tariffs by July 1, 2025, and revise gas tariffs semi-annually starting February 2026.
Legislation is also required to make the captive power levy permanent by the end of May 2025 – an effort to incentivise industries to transition to the national electricity grid.
These additional benchmarks signal the IMF’s insistence on deep-rooted structural reforms in Pakistan’s economy.
While the $7 billion package provides temporary relief, the conditions place heavy compliance burdens on both federal and provincial governments.
With geopolitical frictions and domestic political challenges mounting, Pakistan’s path to economic recovery remains fraught with uncertainties.
Also Read: Trump To Call Putin & Zelensky Separately In Bid To Halt Bloodshed
As the nation marks 11 years under PM Modi's leadership, actress Hina Khan shares her…
Subhash Ghai has praised PM Narendra Modi’s leadership for catalysing India’s growth and changing the…
India and five Central Asian nations have agreed to deepen cooperation on rare earths and…
Prime Minister Modi has redefined Indian agriculture with the ‘Beej Se Bazaar Tak’ vision, transforming…
EV sales topped 4% of passenger vehicle retail in May 2025, signalling growing demand for…
One year into Modi 3.0, reforms have reduced poverty, strengthened defence, and accelerated the digital…