IMF issues strong warnings, sets 11 new conditions for Pakistan amidst increased tension with India.

The International Monetary Fund (IMF) mentions the requirements of its bailout program for Pakistan, adding 11 new conditions and bringing a total of 50 structural benchmarks and conditions.According to the Express Tribune, amidst major new requirements, Pakistan should secure parliamentary approval for 17.6 trillion budgets, apply high loan servicing surcharge on electricity bills, and lifted restrictions on imports of cars older than three years old.The IMF has also expressed concern about the possible impact of the growing India-Pakistan stress on the success of the program.The IMF staff-tier report released on Saturday warns, “Increasing stress between India and Pakistan, if continuously or deteriorated, may increase the risk for the fiscal, external and improvement goals of the program.”

Here is 11 new conditions of IMF for Pakistan

1. 17.6 Trillion Federal Budget Parliamentary approval
   • Pakistan will have to pass a new budget for the financial year 2025-26 as per the goals of the IMF program by June 2025.
2. Agricultural income tax reform Provincial level
   • All four provinces will have to implement new laws by June:
     • Tax payer identity and registration
     • Compliance improvement scheme
     • Communication campaign
     • Operating withdrawal platform
3. Governance action plan
   • The government should publish a governance reform strategy based on the clinical assessment of the IMF.
4. Financial sector strategy since 2010
   • A long -term plan should be prepared for the post -2010 after the financial sector and institutional and regulatory objectives should be published.
5. Annual Electric Tariff Ribassing Notification
   • Cost-control levels should be released by July to maintain tariffs.
6. Semi-annual gas tariff adjustment notification
   • Gas pricing is required by February 2026 to ensure cost recovery.
7. Captured Shakti Levi Ordinance Law
   • Parliament should make this ordinance permanent by the end of May.
   • For the purpose of transferring industrial energy use to the national grid.
8. Remove Cap on debt servicing overload
   • By June, a law should be adopted to eliminate Rs 3.21 per unit sealing on this surcharge.
9. Phase-out plan incentive for special technology sectors
   • Pakistan should prepare a plan by the end of 2024 to end all fiscal incentives for STZ and other industrial parks/areas by 2035.
10. Car import liberalization
    • To lift quantitative sanctions on commercial imports of cars used (initially up to five years), submit laws in Parliament till the end-July.
11. Development expenses
    • From the budget of 17.6 trillion, 1.07 trillion rupees should be allocated for development expenses.