The International Monetary Fund (IMF) has imposed 11 additional conditions on Pakistan as part of its ongoing $7 billion bailout program, bringing the total number of requirements to 64 in just 18 months.
The new measures, detailed in the IMF’s staff-level report released Thursday, target corruption vulnerabilities, elite capture in the sugar sector, and inefficiencies in the Federal Board of Revenue (FBR), while also seeking to improve governance, service delivery, and the power sector’s financial health.
Among the most significant new requirements, Pakistan must publish the asset declarations of high-level federal civil servants on a government website by December next year, with plans to expand this to provincial officials and grant banks full access to these records. The move is intended to identify mismatches between income and assets and increase transparency.
By October 2025, the government is also required to publish an action plan to address corruption risks in 10 key departments, with the National Accountability Bureau leading the effort.
To further strengthen anti-corruption efforts, provincial agencies will be empowered to receive financial intelligence and continue to receive support for investigating corruption offenses. The IMF’s latest conditions follow the release of a diagnostic assessment that highlighted deep-rooted weaknesses in Pakistan’s legal and governance systems.
The IMF has also directed Pakistan to complete a comprehensive review of remittance costs and cross-border payment barriers, and to publish an action plan by May 2025. This comes as remittance costs are projected to rise to $1.5 billion in the coming years, even as remittances remain Pakistan’s largest source of foreign exchange.
Other new requirements include a comprehensive study of obstacles to local currency bond market development, with a strategic action plan due by September 2025. To address elite capture in the sugar industry, the IMF has mandated that federal and provincial governments agree on and adopt a national policy for sugar market liberalization by June 2025, covering licensing, price controls, import/export permissions, zoning, and implementation timelines.
The FBR’s underperformance has triggered further conditions, including the finalization of a reform roadmap by the end of December, with clear priorities, staffing assessments, timelines, revenue impact estimates, and key performance indicators. The government must fully implement at least three priority reforms, including any necessary legislation and staff changes, and begin KPI reporting.
By December 2025, Pakistan is also required to develop and publish a medium-term tax reform strategy, finalize preconditions for private sector participation in HESCO and SEPCO, and sign public service obligation agreements with the seven largest entities before the next budget.
Amendments to the Companies Act, 2017 must be prepared and submitted to Parliament to modernize corporate governance and align with international standards, while a concept note on SEZ Act reforms must also be published.
The IMF has further stipulated that if revenue targets are missed by the end of December 2025, the government must introduce a mini-budget, which could include higher excise duties on fertilizers, pesticides, and sugary items, as well as a broader sales tax base. The deadline for publishing an action plan to address vulnerabilities identified in the governance and corruption assessment has also been extended.
