IMF Imposes 11 New Conditions on Pakistan, Including Tax Hike and Energy Price Adjustments
ISLAMABAD: The International Monetary Fund (IMF) has reportedly imposed 11 new conditions on Pakistan, including frequent increases in gas and electricity prices, enhanced transparency and autonomy of the National Accountability Bureau (NAB), and broader structural reforms across key economic sectors.
According to details, the IMF has proposed a tax revenue target of Rs15,267 billion for the next fiscal year for the Federal Board of Revenue (FBR). Under this plan, Pakistan may introduce additional taxes worth Rs430 billion, including Rs215 billion in new tax measures and Rs115 billion through improved tax enforcement.
The IMF also expects petroleum levy collections to reach Rs1,727 billion in the upcoming fiscal year, placing further pressure on consumers.
The structural benchmarks outlined by the IMF include approval of the federal budget by Parliament, strengthening anti-corruption and public procurement frameworks, improving tax administration, and maintaining the Benazir Income Support Programme (Kafalat).
Other conditions include a roadmap for gradual currency exchange rate liberalization, enhanced regulatory transparency, and amendments to Public Procurement Regulatory Authority (PPRA) rules. The IMF has also called for continued tariff adjustments in the energy sector, including periodic increases in gas and electricity prices.
Additionally, the fund has urged the government to eliminate incentives for Special Economic Zones by 2035, establish a Pakistan Regulatory Registry for federal and Islamabad business regulations, and improve governance in key economic institutions.
The new conditions are expected to play a significant role in shaping Pakistan’s upcoming federal budget and broader economic policy framework.
