ISLAMABAD: The International Monetary Fund has imposed 11 additional conditions on Pakistan under its ongoing $7 billion bailout programme, significantly expanding its influence over the country’s economic policymaking. As a result, the total number of conditions has risen to 75 within less than two years, covering key areas such as budget approval, energy pricing, tax administration, and regulatory reforms.
According to media reports, the IMF has directed that the FY2026-27 federal budget must strictly align with staff-level agreements. Consequently, this marks the second consecutive year in which fiscal planning remains closely guided by the lender. In addition, authorities must amend laws governing Special Economic Zones and Special Technology Zones by June 2027, phasing out tax incentives and limiting discretionary powers.
Furthermore, Export Processing Zones will face tighter restrictions, including a ban on selling goods in the domestic market by September 2026 to curb tax evasion. At the same time, the IMF has mandated stricter energy pricing mechanisms, including monthly fuel charge adjustments, quarterly electricity tariff revisions, and semi-annual gas price increases. Full annual electricity tariff implementation must be ensured by January 2027.
The programme also requires the creation of a centralised Pakistan Regulatory Registry by mid-2027 to streamline business regulations. Meanwhile, reforms in the Federal Board of Revenue will introduce centralised audit selection and compulsory follow-up on high-risk cases. Procurement rules will also change to remove preferential treatment for state-owned enterprises.
However, the IMF has proposed raising stipends under the Benazir Income Support Programme from Rs14,500 to Rs19,500 starting January 2027 to cushion inflationary pressures. Experts warn that while these steps aim to stabilise the economy, they may strain growth, increase energy costs, and challenge investor confidence.
