The International Monetary Fund (IMF) has approved an additional loan package worth nearly ₹8,000 crore (INR) for Pakistan. Islamabad has already received the first two installments. However, to unlock the next tranche, the IMF has imposed 11 new conditions. According to a report released on Saturday and cited by The Express Tribune and news agency PTI, these fresh stipulations raise the total number of conditions Pakistan must meet to 50.
Breakdown of the 11 New IMF Conditions
One of the major demands is that Pakistan’s budget for the 2026 fiscal year must align strictly with IMF guidelines and must be approved by Parliament.
The IMF has projected a federal budget outlay of PKR 17.6 trillion, of which PKR 1.07 trillion must be allocated solely for development purposes.
Tax Reforms: Focus on Agricultural Income
The IMF has directed Islamabad to implement new agricultural income tax laws in provinces like Punjab, Sindh, Balochistan, and Khyber Pakhtunkhwa. By June, a centralized digital platform must be established for processing tax returns, identifying taxpayers, and ensuring proper documentation.
Administrative Overhaul and Transparency
The IMF has urged the Pakistani government to prepare and publish a comprehensive administrative reform plan. This should identify key structural weaknesses and propose transparent measures for improvement. Additionally, Pakistan must draft and release an economic strategy roadmap for the post-2027 period.
Four Major Conditions in the Power Sector
1 . By July 1, 2025, Pakistan must issue a notification to revise annual electricity tariffs.
2 . The maximum allowable additional cost for power debt repayments—currently capped at PKR 3.21 per unit—must be eliminated via legislation by June.
3 . These steps aim to tackle what the IMF calls Pakistan’s “policy-induced debt crisis.”
Geopolitical Context: Operation Sindoor and Indo-Pak Tensions
These economic conditions come at a time of heightened tensions between India and Pakistan. Following the Pahalgam terror attack, India launched “Operation Sindoor,” destroying several terror camps across the border. The Line of Control remained volatile for four days until both nations agreed to a ceasefire on May 10.
Amid this turmoil, the IMF’s decision to extend a large loan and simultaneously impose strict conditions adds another layer of pressure on Pakistan’s already strained administrative and economic machinery.
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