Islamabad ( OT Webdesk)—The International Monetary Fund (IMF) has placed 11 new conditions on Pakistan as part of its bailout package, escalating the total number of conditions to 50.
These new mandates, alongside rising geopolitical tensions with India, pose a significant challenge to Pakistan’s economic recovery.
According to the IMF’s Staff Level Report, published on Saturday, the ongoing military confrontation with India, triggered by Operation Sindoor and retaliatory strikes, could hinder Pakistan’s fiscal reforms and increase financial instability.
Key IMF Conditions:
- Approval of a Rs 17.6 trillion federal budget by June 2025.
- Adjusting electricity and gas tariffs to cost-recovery levels within the next year.
- Permanent enforcement of the captive power levy by May-end.
- New agricultural income tax laws are being implemented across all provinces.
- Relaxation of import restrictions, allowing five-year-old used cars by July.
The defence budget is also set to rise 18%, surpassing Rs 2.5 trillion, following the recent military conflict.
In addition, the IMF has called for urgent energy sector reforms, criticising the inefficiencies that have led to Pakistan’s growing circular debt.
Financial analysts warn that Pakistan’s economic outlook remains fragile, with concerns that rising inflation and trade disruptions could further complicate recovery efforts.
