ISLAMABAD: The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan, including frequent increases in electricity and gas prices, higher tax targets and wide-ranging structural reforms, according to media reports and details of the lender’s latest staff review.
Tougher Fiscal Targets
The conditions come as Pakistan seeks to meet fiscal benchmarks under its ongoing programme with the IMF, which has required stricter revenue mobilisation and policy reforms across energy, taxation and governance sectors.
According to reports, the IMF has set a petroleum levy collection target of Rs1.727 trillion for the next fiscal year, significantly increasing the burden on consumers through higher fuel-related charges. The Fund has also set a Federal Board of Revenue (FBR) tax collection target of Rs15.267 trillion, alongside proposed additional measures worth Rs430 billion to help meet the goal.
Of the proposed additional measures, Rs215 billion are expected to come from new taxes, while Rs115 billion would be generated through enforcement actions and improved compliance.
Governance and Transparency Reforms
The IMF has also recommended strengthening the independence and transparency of the National Accountability Bureau (NAB), along with ensuring regular notification of electricity and gas tariff adjustments as part of cost-recovery measures in the energy sector.
Other conditions include parliamentary approval of the federal budget, strengthening of anti-corruption and public procurement frameworks, and improvements in tax administration and revenue collection systems.
Social Protection and Structural Adjustments
The Fund has also called for the continuation of the Benazir Income Support Programme (BISP), preparation of a roadmap for exchange rate flexibility, and enhanced regulatory transparency across key sectors. Structural reforms also include amendments to Public Procurement Regulatory Authority (PPRA) rules, phasing out incentives for special economic zones by 2035, and establishing a national regulatory registry to improve business oversight.
Economic analysts say the measures reflect the IMF’s push for fiscal consolidation and long-term structural adjustments aimed at stabilising Pakistan’s economy under the ongoing programme. The conditions are expected to be formally incorporated into the next budget cycle.
