The IMF has set 11 new conditions on Pakistan’s $7 billion bailout, focusing on governance, anti-corruption, and economic reforms. Key measures include asset disclosures for officials, sector reforms, and strengthened provincial anti-corruption powers.
The International Monetary Fund (IMF) has imposed 11 fresh conditions on Pakistan as part of the second review of its $7 billion bailout programme, taking the total number of conditions to 64 within just 18 months.
The staff-level report released on Thursday outlines governance, anti-corruption, fiscal and structural reforms aimed at addressing what the IMF calls “deep-rooted distortions” in Pakistan’s economy.
The new measures target long-standing governance weaknesses, entrenched corruption, and losses in critical sectors.
A major requirement is the publication of asset declarations of senior federal civil servants by December 2026 on an official government website. The government plans to extend this to senior provincial officials, while banks will be given full access to the data to detect discrepancies between income and assets.
Key conditions imposed
Asset declarations: High-level federal civil servants must declare their assets by December 2026, with provincial officials to follow.
Bank access: Banks will have full access to these declarations to identify mismatches between income and assets.
High-risk departments: By October 2026, the government must release action plans for 10 high-risk departments based on corruption risk assessments.
NAB coordination: The National Accountability Bureau will coordinate the plans for the most vulnerable agencies.
Provincial empowerment: Provincial anti-corruption bodies will gain powers to access financial intelligence and conduct investigations.
Revenue reforms: Pakistan must submit a reform roadmap for its revenue board and a medium-term tax reform strategy.
Remittance assessment: A comprehensive review of remittance costs and cross-border payment barriers is required.
Sugar market liberalisation: Islamabad must develop a national policy to open the sugar market, long dominated by politically connected business groups.
Power sector reforms: Pakistan must reduce losses in the power sector and meet preconditions for private-sector participation in distribution companies.
Corporate reforms: Amendments are required to the Companies Act and the Special Economic Zones (SEZ) Act.
Mini-budget: A mini-budget must be introduced next year if revenue collections fall short.
Pakistan’s economy remains heavily dependent on external financing from the IMF and the World Bank. The country narrowly avoided a loan default after the IMF extended the $7 billion bailout in 2024 and has received roughly $3.3 billion since last year.
The IMF’s Governance and Corruption Diagnostic Assessment flagged major weaknesses across Pakistan’s legal and institutional frameworks, prompting these fresh conditions to improve governance, strengthen anti-corruption measures, and reform key economic sectors.
End of Article
