New Measures Tighten Fiscal and Regulatory Oversight
ISLAMABAD — The International Monetary Fund has imposed 11 additional conditions on Pakistan under its ongoing $7 billion bailout programme, raising the total number of requirements to 75 within two years. These conditions now extend across fiscal planning, energy pricing, taxation, and regulatory reforms, reflecting deeper external oversight of economic policy.
According to reports, the IMF has directed Pakistan to pass the FY2026-27 budget strictly in line with staff-level agreements. Consequently, this marks the second consecutive year in which budgetary decisions align closely with IMF guidance. Moreover, authorities must amend laws governing Special Economic Zones and Special Technology Zones by June 2027, gradually removing fiscal incentives and limiting tax concessions.
In addition, Export Processing Zones will face tighter controls, including a ban on domestic sales by September 2026 to reduce tax evasion. Meanwhile, procurement rules will change to eliminate preferential treatment for state-owned enterprises in government contracts.
Energy Reforms and Social Support Measures Introduced
The IMF has also enforced stricter energy pricing mechanisms. Authorities must implement monthly fuel adjustments, quarterly electricity tariff increases, and semi-annual gas price revisions. Furthermore, full annual electricity pricing must take effect by January 2027.
At the same time, the lender has called for social relief measures. It has recommended increasing Benazir Income Support Programme payments from Rs14,500 to Rs19,500 starting January 2027 to offset inflationary pressures.
Experts warn that while these reforms aim to stabilise finances and improve transparency, they may reduce policy autonomy. Additionally, rising energy costs and reduced incentives could impact economic growth and investor confidence.
