The International Monetary Fund (IMF) has imposed 11 additional conditions on Pakistan under its ongoing $7 billion bailout programme, further tightening oversight over governance, taxation, energy reforms, and elite-dominated sectors. With these fresh demands, the total number of IMF conditions has climbed to 64 within just one and a half years, reflecting the lender’s growing concern over Pakistan’s structural weaknesses.
Focus on Anti-Corruption and Governance Reforms
A major thrust of the new conditions is curbing corruption and improving transparency. According to the IMF staff-level report for the second programme review, Pakistan will be required to publish asset declarations of senior federal civil servants on a government website by December next year.
These disclosures aim to identify inconsistencies between income and accumulated wealth. The plan will later extend to provincial officials, with banks also gaining access to the declarations.
Additionally, by October next year, the government must publish a comprehensive anti-corruption action plan covering 10 high-risk departments. The National Accountability Bureau (NAB) will coordinate these efforts, while provincial anti-corruption bodies will be empowered to access financial intelligence and receive specialised training.
Read more: Pakistan’s foreign exchange reserves rose by $21 million to $14.4 billion
Sugar Sector Liberalisation and Elite Capture
The IMF has also targeted the sugar industry, long criticised for cartelisation and elite influence. By June next year, federal and provincial governments must jointly adopt a national sugar market liberalization policy. This policy will address licensing, pricing controls, import-export permissions, zoning issues, and implementation timelines, aiming to end market distortions and political interference.
Remittances, Bonds, and Tax Reforms
Another key condition requires Pakistan to conduct a comprehensive assessment of remittance costs by May next year. With remittance-related expenses projected to reach $1.5 billion, the IMF wants structural barriers removed to protect this vital source of foreign exchange.
Meanwhile, the government must study obstacles in developing the local currency bond market and publish a reform roadmap by September next year. On taxation, the IMF has demanded a detailed FBR reform roadmap, including
- Staffing reviews
- Performance indicators
- Revenue impact estimates, by the end of December
Energy Sector and Corporate Governance
To minimize losses in the power sector, Pakistan must finalise conditions for private sector participation in HESCO and SEPCO and sign public service obligation agreements before the next budget. Amendments to the Companies Act 2017 and proposed reforms to the SEZ Act are also part of the agenda.
Read more: IMF predicts inflation in Pakistan to rise again next fiscal year
Mini-Budget on the Table
Crucially, the government has agreed to introduce a mini-budget if revenue targets are missed by December 2025. Potential measures include higher excise duties on fertilisers, pesticides, and sugary items, along with broadening the sales tax base—steps that could directly create various effects on consumers.
All-inclusively, the IMF’s expanded conditions signal deep mistrust in Pakistan’s reform pace, underscoring that economic stability now hinges on politically difficult but unavoidable structural changes.