IMF slaps 11 new conditions to Pakistan's $7 billion loan programme

ISLAMABAD (Dunya News) - The International Monetary Fund (IMF) has added 11 more stringent conditions on Pakistan under the latest staff-level review of its $7 billion bailout package, with the fresh additions the total number of conditions has risen to 64.

According to the IMF’s staff report released on Thursday, Pakistan will be required to publish the asset declarations of high-level federal civil servants on a government website by December 2026 to identify income–asset mismatches. The obligation will later be expanded to senior provincial civil servants, while banks will be given full access to these declarations.

By October 2026, Pakistan must also publish a detailed action plan addressing corruption vulnerabilities across 10 high-risk departments, based on institutional risk assessments. The National Accountability Bureau (NAB) will lead and coordinate these anti-corruption frameworks. Additionally, provincial anti-corruption establishments will be strengthened to receive financial intelligence and conduct specialised investigations.

The IMF’s conditions stem from its recent Governance and Corruption Diagnostic Assessment, which highlighted deep systemic weaknesses in Pakistan’s legal and administrative structures.

A major new condition relates to foreign remittances, after projected remittance costs were estimated to reach $1.5 billion in the coming years. Pakistan must conduct a comprehensive assessment of remittance charges and obstacles to cross-border payments and prepare an action plan by May 2026.

The IMF also demanded a study on bottlenecks in the local currency bond market by September 2026, followed by a strategic action plan for reforms.

To break the longstanding elite capture of the sugar sector, the federal and provincial governments must agree on and the federal cabinet must adopt a National Sugar Market Liberalisation Policy by June 2026. This policy will address licensing, price controls, zoning, export/import permissions, and set clear implementation timelines.

The underperformance of the Federal Board of Revenue (FBR) has prompted additional requirements. By December 2025, the government must finalise a reform roadmap covering staffing needs, timelines, revenue impact projections, and KPIs. It must then fully implement at least three priority reforms, including necessary legislation, personnel deployment and KPI reporting. A medium-term tax reform strategy must also be published by December 2026.

In the power sector, Pakistan is required to complete prerequisites for private-sector participation in HESCO and SEPCO, and sign public service obligation (PSO) agreements with all seven major DISCOs before the next budget is presented to Parliament.

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The government must also propose amendments to the Companies Act 2017 to strengthen compliance for unlisted companies and modernise governance practices. Similarly, a concept note must be published detailing planned reforms to the Special Economic Zones (SEZ) Act, including KPIs and rationale for amendments.

If revenue collection falls short by December 2025, Pakistan has agreed to introduce a mini-budget, including:

A 5% increase in federal excise duty on fertilisers and pesticides

New excise duty on high-value sugary items

Broadening the sales tax base by shifting selected goods to the standard rate

The IMF has also extended Pakistan’s deadline for publishing the action plan addressing weaknesses identified in the governance diagnostic report.