The International Monetary Fund (IMF) has outlined 11 new conditions for Pakistan to receive the remaining funds under its $7 billion loan program. According to the IMF staff report, Pakistan must approve a Rs. 17.6 trillion federal budget for FY2026, enforce agriculture income tax, remove electricity tariff caps, and lift import restrictions on used vehicles.
Key conditions include achieving a Rs. 2.1 trillion primary surplus, raising the defence budget to over Rs. 2.5 trillion, and ensuring full cost recovery through annual electricity and semi-annual gas tariff adjustments. The IMF also calls for ending the Rs. 3.21/unit debt surcharge cap and legislating a captive power levy.
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Provinces are required to implement agriculture income tax by June, while the federal government must publish a governance reform plan, link cash transfer benefits to inflation, and draft a post-2027 financial sector reform strategy.
Pakistan must submit laws by July to remove restrictions on used car imports and prepare a timeline to phase out all tax incentives for Special Technology Zones and industrial parks by 2035.
