ISLAMABAD: The International Monetary Fund has recently made its bail out program for Pakistan much more stringent. The International Monetary Fund has now set up an additional 11 Structural Benchmarks, taking the total number of IMF conditions for Pakistan to 55.
The condition was formed during the third review conducted under the Extended Fund Facility and the second review conducted under the Resilience and Sustainability Facility. The International Monetary Fund released these conditions through its review document, which involved various policy reforms in areas such as fiscal policies, governance, energy pricing, monetary policies, trade, and social protection.
Approval of Budget under IMF Guidelines to be Secured by June 2026
The very first condition in relation to the new IMF requirements for Pakistan is directed towards the government budget. Under this condition, Pakistan will have to approve its FY2027 budget based on an understanding made with the IMF mission. There should be at least 2% primary budget balance as per GDP.
The deadline is June 30, 2026, providing very little scope for any manoeuvring by the government. This aspect of the program has been highlighted by the International Monetary Fund as crucial for ensuring that the program continues moving towards its main goals regarding the fiscal front. Any deviation from the target balance would be a violation of this benchmark criterion.
Revenue Administration, Procurement and Anti-corruption under the Lens
Not only has the IMF included the issue of the budget in its recommendations for Pakistan, but it is also putting emphasis on institutional reforms. Before the end of August 2026, Pakistan has been asked by the IMF to create an audit manual and policy whereby the selection of tax cases shall be centrally performed via the “Compliance Risk Management” procedure.
Regarding procurement, the Pakistan government will need to update the PPPRA regulations regarding procurement by the end of September 2026 to ensure that state-owned enterprises no longer enjoy preference over private entities in their tenders. This is a requirement placed by the IMF as it calls for equal opportunities in all public procurements.
The agenda for governance does not stop here. By the end of January 2027, Pakistan will be required to present amendments to the ordinance of the National Accountability Bureau to parliament. These amendments are supposed to set up a merit and competition-based appointment system for the leadership positions at NAB, which will be done using a stakeholder committee from various sectors of society and pre-set qualification requirements. Moreover, NAB needs to make public its investigative and prosecution policies together with yearly conviction figures.
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Energy Tariffs: Deadline for Three Adjustments Pakistan Can’t Miss
Energy industry requirements from the IMF to Pakistan come with three distinct deadlines – all of which have something to do with cost recovery. There are two deadlines set for the adjustment of gas tariffs: one on July 1, 2026, and another on February 15, 2027.
IMF’s position remains constant for all three: keep energy prices high enough to cover costs. Pakistan’s energy sector debt has become one of the most destabilizing structures within its financial structure. Subsidized prices lower than cost-recovery rates increase that debt. IMF wants that debt removed by making gradual, planned adjustments rather than politically motivated freezes.
The Liberalization of Foreign Exchange and Social Safety Nets Are also on the Radar Screen
The State Bank of Pakistan is also on a deadline of its own within the context of the latest IMF Pakistan requirements. Before March 31, 2027, the State Bank of Pakistan needs to have a plan in place for gradually liberalizing the foreign exchange system.
In relation to social protection, the IMF has made it mandatory for Pakistan to make a yearly adjustment based on inflation and generosity to the Kafaalat unconditional cash transfer program by January 31, 2027. The purpose of this benchmark is to maintain the purchasing power of the poorest households in Pakistan despite inflation.
Changes in SEZ Incorporate Trade and Investment Element
Eleventh new criterion involves reforms for Pakistan’s Special Economic Zones and Software Technology Zones. It is necessary for Pakistan to change the SEZ Act and STZA Act for doing away with the fiscal incentives that currently exist, with an incentive system based on cost rather than profit.
What Does It Mean for Pakistan to Have 55 Conditions?
The increase in IMF conditions for Pakistan to 55 indicates the degree of restructuring needed by the fund to stabilise the country’s economic situation. All conditions aim at addressing specific weaknesses either in fiscal, energy, monetary or governance practices.
Completing all 55 according to the schedule requires political will and institutional capacity, which must be maintained consistently. Pakistan has had a history of failing to do so. The third review shows that the IMF is keeping an eye on Pakistan, and with each new loan cycle, it gets stricter.
