The International Monetary Fund has imposed 11 new requirements on Pakistan as part of its $7 billion bailout package, reported The Express Tribune. The staff-level report for the second review of the package was published on 11th December (Thursday). Long-standing governance shortcomings, persistent corruption challenges, stop elite control of the sugar industry, determine the exact cost of foreign remittances and losses in vital sectors are the targets of the new measures.
The fresh development transpired following the release of the Governance and Corruption Diagnostic Assessment report, which revealed serious flaws in Pakistan’s legal and governance frameworks.
The new requirements have also been put in place to improve governance and service delivery, lower losses in the power industry through private sector involvement, and increase the efficacy of the country’s Federal Board of Revenue (FBR), which is incredibly inefficient.
The posting of the asset declarations of high-level federal civil employees on an official government website by December of the following year is also an essential requisite. According to the IMF, the disclosures are intended to assist in identifying disparities between assets and income. Banks will have complete access to the data and the government plans to extend this obligation to senior provincial authorities as well.
Pakistan will also have to release an action plan based on institutional-level risk assessments by October of the next year to address corruption risks in ten departments. The National Accountability Bureau will oversee and direct the creation of action plans for the agencies that have been determined to be most vulnerable.
Additionally, Pakistan has been directed by the IMF to finish an action plan and a thorough analysis of remittance costs and structural barriers to cross-border payments by May of next year. The IMF has mandated that the federal and provincial governments reach a consensus. The federal cabinet also has to adopt a national policy for sugar market liberalisation by June of next year to end the elite control of the sugar business.
Islamabad must also create and release a thorough medium-term tax reform plan by December of the following year. This plan must include a resource plan for implementation, a clear governance structure, a sequential roadmap of tax policy, administration and legal reforms.
The power industry is likewise under increased scrutiny. Pakistan has been told by the IMF to reduce electricity sector losses and fulfil requirements for private sector involvement in distribution businesses.
The IMF’s list of requirements also includes corporate reforms, such as modifications to the Special Economic Zones (SEZ) Act and the Companies Act. In the event that tax collections are insufficient, the IMF also asked that Pakistan release a mini budget in 2026.
The fresh IMF action took place just days after the IMF authorised the disbursement of $1.2 billion. Over the course of 18 months, the total number of conditions have now reached 64. Since the late 1980s, Pakistan has sought assistance from the IMF more than 20 times.
Pakistan’s fragile economy continues to largely dependent on outside funding from the World Bank and the IMF. It almost escaped financial default when IMF approved a $7 billion rescue package in 2024. Pakistan has received over $3.3 billion from the international body since last year, making it one of its largest debtors.
