IMF Imposes 11 New Conditions for Pakistan’s $1.2 Billion Tranche Approval
Pakistan has agreed to 11 new conditions set by the International Monetary Fund (IMF) for the approval of a $1.2 billion installment under its ongoing financial assistance program, according to official sources.
The new conditions require amendments to the Public Procurement Regulatory Authority (PPRA) rules to remove preferential treatment that allows state-owned enterprises (SOEs) to receive contracts without competitive bidding.
Authorities have also agreed to revise utility pricing mechanisms, including biannual gas tariff adjustments starting July 2026 and annual electricity tariff revisions from January 2027, making future price increases in both sectors likely.
Under the new structural benchmarks, Pakistan will also amend laws related to Special Economic Zones (SEZs) and Special Technology Zones (STZs), gradually phasing out financial incentives by 2035. Reforms will also be introduced in the National Accountability Bureau (NAB) ordinance and the Federal Board of Revenue (FBR) to centralize audit case selection and shift towards a cost-based system for tax facilitation.
Additionally, all incentives linked to the China-Pakistan Economic Corridor (CPEC) are expected to be phased out by 2035.
The IMF Executive Board is scheduled to review Pakistan’s third assessment under the $7 billion Extended Fund Facility (EFF) next month, which will also determine the approval of the fourth tranche of the program.
