IMF adds 11 new conditions to Pakistan's bailout program, total number reaches 75

Pakistan and the IMF have added 11 more conditions to the $7 billion bailout program, taking the total number of conditions in the past two years to 75.

The government has assured the IMF that the budget for the fiscal year 2026-27 will be approved by the National Assembly in accordance with the program’s targets. This will be the second consecutive budget that is subject to IMF conditions. Along with this, the government has also promised to keep the fiscal deficit low and avoid unrealistic growth targets.

Under the new conditions, Pakistan will have to amend the laws of Special Economic Zones and Special Technology Zones by 2027, the current tax incentives will be phased out and a target of completely eliminating all incentives by 2035 has been set. Export Processing Zones will be prevented from selling in the local market to stop tax evasion.

In the energy sector, regular increases in electricity and gas prices on quarterly and monthly basis have been made mandatory. It has also been directed to make the audit system of the FBR more effective and to abolish the facility of awarding contracts to government agencies without competition.

To reduce the burden of inflation on the people, the assistance amount of the Benazir Income Support Program will be increased from Rs 14,500 to Rs 19,500, which will be implemented from January 2027. The IMF has so far provided $ 3 billion under this program, while the next installment of $ 1 billion is expected in early May.