The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan as part of its ongoing $7 billion bailout programme, taking the total number of conditions to 64 within just 18 months. The latest requirements are aimed at tackling corruption vulnerabilities, dismantling elite capture of the sugar industry, improving governance in state-owned enterprises, reducing losses in the power sector, and enhancing the effectiveness of the Federal Board of Revenue (FBR).
According to the IMF’s staff-level report for the second review of Pakistan’s Extended Fund Facility, the government must publish asset declarations of high-level federal civil servants on a government website by December next year. This move is designed to identify inconsistencies between declared income and actual assets. The obligation is expected to expand to senior provincial officials, with banks granted full access to these declarations to detect discrepancies.
In addition, Pakistan is required to publish an action plan by October 2026 to address corruption vulnerabilities in ten high-risk departments, led by the National Accountability Bureau (NAB). Provincial anti-corruption authorities will also receive enhanced powers to access financial intelligence and will continue to receive capacity-building support for investigating financial crimes, following findings from the Governance and Corruption Diagnostic Assessment report.
The IMF has also called for a comprehensive assessment of remittance costs and structural bottlenecks in cross-border payments, to be completed by May 2026. This measure follows projections that remittance costs could rise to $1.5 billion over the next few years, despite remittances remaining Pakistan’s largest source of import financing. Additionally, a study on the local currency bond market and an actionable strategic plan is required by September 2026 to strengthen financial markets.
To break elite control of the sugar industry, the federal and provincial governments must adopt a National Sugar Market Liberalisation Policy by June 2026. The policy must address licensing, price controls, import and export permissions, zoning regulations, and include clear timelines for implementation.
The IMF has also mandated reforms to the FBR, requiring the government to publish a comprehensive roadmap by December 2025. The roadmap should prioritize reform areas, allocate staff, set timelines, estimate revenue impact, and define key performance indicators. Based on this, Pakistan must implement at least three priority reforms, including legislation, staffing, and initial KPI reporting.
By the same deadline, Pakistan is expected to finalise private-sector participation preconditions in HESCO and SEPCO, sign public service obligation agreements with seven major SOEs, and submit amendments to the Companies Act to strengthen governance for unlisted firms. A concept note outlining proposed amendments to the SEZ Act, including objectives, KPIs, and rationale, is also required.
Furthermore, in the event of revenue shortfalls by December 2025, Pakistan has agreed to a mini-budget including increased federal excise duties on fertilizers, pesticides, and high-value sugary items, and broadening the sales tax base to maintain fiscal targets.
These newly imposed conditions reflect the IMF’s intensified focus on governance, transparency, and structural reforms to stabilize Pakistan’s economy and ensure sustainable growth.
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