IMF Imposes 11 Fresh Conditions On Pakistan’s USD 7 Billion Bailout Programme, Total Restrictions Now Stand At 64 | World News
The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan under its US$7 billion Enhanced Funds Facility programme, which focuses on anti-corruption measures, governance reforms and identifying financial leaks in government departments.
The new directives come a day after the IMF on Thursday released a $1.2 billion tranche under its ongoing loan program aimed at building climate change resilience and macroeconomic stability in Pakistan. With these additions, the total number of conditions imposed by the credit institution has increased to 64 in the last 18 months.
Key Areas Targeted by the New Conditions
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According to the Express Tribune, the 11 new conditions are primarily aimed at reducing energy sector losses through private participation, ending the takeover of the sugar industry by elites and revealing the true cost of foreign remittances.
Property Declaration for Bureaucrats
Under the new terms, Pakistan must publish detailed asset declarations of senior bureaucrats on government websites by December 2026. The measure is in line with the IMF’s transparency drive and aims to identify differences between declared income and accumulated assets.
The government plans to extend this power to senior civil servants in the state services. Additionally, banks will be given full access to these asset statements, enabling financial institutions to independently cross-verify the information.
Anti-Corruption Action Plans
Pakistan has been instructed to issue comprehensive action plans to prevent corruption in 10 specifically designated government departments. The National Accountability Office was tasked with leading and coordinating the development of these action plans.
Provincial-level anti-corruption agencies will have increased powers, including access to financial intelligence and the authority to conduct financial investigations into corruption crimes.
Transfer Cost Analysis
The IMF mandated a detailed study on remittance costs and identifying bottlenecks in cross-border payments. This focus comes as remittances from overseas Pakistanis remain the country’s largest source of external financing.
Pakistan must submit an action plan by May 2025, as costs related to migrant remittances are expected to reach US$1.5 billion in the coming years. The IMF suspects that inefficiencies and leakages are preventing Pakistan from maximizing this critical revenue stream.
Liberalization of the Sugar Sector
The credit agency has demanded that Islamabad adopt a national policy for sugar market liberalization by June 2026 to prevent the sector from falling into the hands of elites. The policy should include comprehensive recommendations regarding licensing procedures, price controls and import-export permits.
The sugar industry has long been criticized for monopolistic practices that benefit a small elite while keeping domestic prices artificially high.
Energy Sector Reforms
Amid these conditions, Pakistan also needs to implement measures to reduce losses in the energy sector by increasing private sector participation. Circular debt in the energy sector remains one of Pakistan’s most persistent economic challenges.
Payment Status
The IMF has so far transferred a loan of US$ 3.3 billion to Pakistan under the 39-month program approved in September 2024. The program aims to support macroeconomic stability and implement long-term structural reforms for resilience to climate change.
Pakistan is scheduled to receive the remaining tranches subject to meeting quarterly performance targets and implementing envisaged structural reforms.
