Pakistan has been assigned 11 new structural benchmarks by the International Monetary Fund under the Extended Fund Facility and the Resilience and Sustainability Facility programs. These benchmarks are intended to strengthen fiscal discipline, governance, financial sector stability, and economic reforms ahead of the 2026 tax year. The IMF’s recent report highlighted that Pakistan had already met eight of 13 previous benchmarks, including approval of the FY26 budget, implementation of a new agricultural income tax, and amendments to the Civil Servants Act to improve transparency through asset declarations.
The new benchmarks cover multiple areas. Pakistan is required to develop and publish a medium-term tax reform strategy by December 2026, including tax policy reforms, administrative and legal improvements, governance measures, and a resource plan. The Federal Board of Revenue must implement at least three priority reform areas identified with IMF staff, including necessary legislation, staffing enhancements, and initial KPI reporting. Federal civil servants’ asset declarations are also to be published online by December 2026, and a corruption mitigation action plan addressing vulnerabilities in government departments must be developed by October 2026.
In the monetary and financial sector, Pakistan is expected to conduct a comprehensive assessment of remittance costs and structural obstacles to cross-border payments, along with an action plan to increase foreign exchange inflows by May 2026. The domestic bond market will also be assessed to identify bottlenecks, with a strategic plan to improve efficiency and diversify investors to be published by September 2026. In the energy sector, preconditions for private sector participation in DISCOs, specifically HESCO and SEPCO, must be finalized by December 2026 to enhance management efficiency.
For state-owned enterprises, Public Service Obligations agreements with the seven largest SOEs are to be signed before the submission of the FY27 budget, following updated SOE manuals and guidelines by June 2026. Trade and investment policy reforms include adopting a national sugar market policy detailing licensing, price controls, and import/export regulations, and amending the Companies Act 2017 to modernize corporate governance. A concept note on Special Economic Zone reforms outlining objectives, KPIs, and rationale is also expected by June 2026.
Compliance findings show that Pakistan met six of seven quantitative performance criteria for end-June 2025, though minor non-compliance occurred with BISP spending. Progress has been observed in tax collection, domestic debt management, and power sector arrears, while some targets related to budgetary health, education spending, and provincial deficits were missed. Authorities noted that delays in fertilizer and pesticide levies due to agricultural reforms and emergency sugar imports caused temporary non-compliance, but measures have been planned to address these issues.
Pakistani authorities emphasized ongoing reforms, including carbon levies, electric vehicle subsidies, and SOE restructuring, to ensure adherence to the IMF program. The IMF report acknowledged progress while setting new benchmarks to strengthen fiscal management, governance, and market reforms, reinforcing Pakistan’s commitment to sustainable economic stability.
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