IMF Imposes 11 New Conditions on Pakistan Bailout Package, Total Reaches 75

ISLAMABAD: The International Monetary Fund (IMF) has added 11 new conditions to Pakistan’s $7 billion bailout programme, bringing the total number of conditions imposed over the past two years to 75.
According to sources, the Government of Pakistan has assured the IMF that the federal budget for fiscal year 2026–27 will be passed by the National Assembly in line with programme targets.
Officials said this is the second consecutive budget being approved under IMF conditions. The government has also committed to keeping the fiscal deficit under control and avoiding overly ambitious economic growth targets.
Under the new conditions, Pakistan will be required to amend laws related to Special Economic Zones (SEZs) and Special Technology Zones by 2027. The existing tax incentives will be gradually phased out and replaced with cost-based incentives, with a complete withdrawal of such incentives targeted by 2035.
The IMF has also directed that Export Processing Zones will no longer be allowed to sell products in the domestic market to prevent tax evasion.
In the energy sector, electricity and gas prices will be adjusted regularly under the new framework, with mandatory quarterly and monthly revisions.
To improve the business environment, the government has committed to establishing a Pakistan Regulatory Registry by June 2027. The Federal Board of Revenue (FBR) audit system will also be further strengthened and centralized.
In addition, procurement laws will be revised to eliminate the provision of awarding government contracts without competitive bidding.
To cushion the impact of inflation, the government has agreed to increase cash assistance under the Benazir Income Support Programme (BISP) from Rs14,500 to Rs19,500, with implementation expected from January 2027.
It is worth noting that the IMF has so far disbursed $3 billion under the current programme, while the next tranche of $1 billion is expected in early May.