The International Monetary Fund (IMF) has added 11 new conditions to Pakistan’s ongoing $7 billion bailout, raising the total number of program requirements to 64 within just 18 months.
The latest measures, outlined in the IMF’s staff-level report released Thursday, target corruption vulnerabilities, elite capture in the sugar industry, governance weaknesses, and financial inefficiencies—particularly within the Federal Board of Revenue (FBR) and the power sector.
One of the most significant requirements is the mandatory publication of asset declarations of high-level federal civil servants on a government website by December next year. This will later expand to provincial officials, while banks will be granted full access to the data to identify income–asset mismatches.
By October 2025, Pakistan must also publish an action plan to address corruption risks in 10 key departments, led by the National Accountability Bureau.
The IMF has further instructed Pakistan to strengthen provincial anti-corruption agencies with access to financial intelligence. These measures follow a diagnostic assessment that highlighted deep structural flaws in Pakistan’s governance systems.
Additionally, the government must complete a comprehensive review of remittance costs and cross-border payment hurdles, and publish an action plan by May 2025. Remittance costs are projected to climb to $1.5 billion even as inflows remain Pakistan’s biggest source of foreign exchange.
Other New IMF Requirements Include:
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A study on barriers to local currency bond market development, with a strategic plan due by September 2025.
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A national policy for sugar market liberalization—covering licensing, pricing, export/import controls, zoning, and timelines—by June 2025.
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A detailed FBR reform roadmap by December 2025, including KPIs, staffing reviews, revenue impact estimates, and implementation timelines.
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Completion of at least three priority FBR reforms, including legislation and personnel changes.
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A medium-term tax reform strategy by December 2025.
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Preconditions for private sector participation in HESCO and SEPCO, and signing of public service obligation agreements with the seven largest entities before the next budget.
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Amendments to the Companies Act 2017 to modernize corporate governance.
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Publication of a concept note on SEZ Act reforms.
The IMF has also warned that if revenue targets are missed by December 2025, Pakistan must introduce a mini-budget. This could include higher excise duties on fertilizers, pesticides, sugary products, and a broader sales tax regime.
The deadline for publishing the action plan to address vulnerabilities highlighted in the corruption and governance assessment has also been extended.
