Pakistan is now facing a fresh set of strict requirements from IMF as part of its ongoing bailout programme.
The global lender has introduced 11 new conditions aimed at fixing problems in governance, tax collection, state-owned institutions, and key sectors such as energy and sugar. These additions bring the total number of conditions to 64 within just 18 months.
According to the IMF’s latest staff report, Pakistan must take several major steps to address long-standing weaknesses. One of the biggest requirements is the public disclosure of asset statements of top federal officers by December next year.
This measure is meant to help identify unexplained wealth and strengthen accountability. The government has also agreed to expand this rule to provincial officers and allow banks to access these records.
Another major condition requires Pakistan to create action plans for 10 government departments that face high corruption risks.
These plans must be published by October next year. Provincial anti-corruption bodies will receive more powers and training to handle financial intelligence and investigate complex cases.
The IMF also wants Pakistan to assess the rising cost of remittances and publish a clear strategy by May.
Remittances remain Pakistan’s biggest support for foreign exchange needs, and increasing transfer fees are a growing concern.
The sugar sector is also under focus, as the IMF insists on a national policy to end elite control and open the market. This includes reforms in licensing, pricing, export rules and zoning by June next year.
Reforms in the power sector are another priority. Pakistan will need to complete conditions that allow private-sector involvement in HESCO and SEPCO and develop agreements for major distribution companies before the next budget.
To fix the struggling tax machinery, the government must finalise a detailed roadmap for FBR reforms by December.
This roadmap must include staffing needs, targets, KPIs and timelines. A medium-term tax reform strategy must also be published by the end of next year.
The IMF has further directed Pakistan to review hurdles in local currency bond markets and draft an action plan. Amendments to the Companies Act and SEZ Act must also be prepared and sent to Parliament.
If revenue targets fall short by December 2025, the IMF has asked Pakistan to be ready for a mini-budget, including new duties on fertilisers, pesticides, sugary items and adjustments in sales tax.
These new conditions reflect the IMF’s push for deep structural reforms, signalling that Pakistan must make major institutional changes to stabilise its economy in the coming years.