IMF Adds Fresh Reform Burden as Pakistan Faces 64 Conditions Under $7 Billion Programme

IMF Imposes Fresh Conditions on Pakistan, Deepening Reform Pressure

The International Monetary Fund (IMF) has imposed 11 additional conditions on Pakistan under the second review of its $7 billion bailout programme , intensifying scrutiny of Islamabad’s economic management and governance standards. With these additions, the total number of conditions attached to the programme has reached 64 within just 18 months , reflecting persistent concerns over reform delivery and institutional weaknesses.

Governance and Anti-Corruption Focus

A major thrust of the new conditions targets governance failures and entrenched corruption , which the IMF describes as structural distortions undermining Pakistan’s economy. One key requirement mandates the public disclosure of asset declarations by senior federal civil servants by December 2026 . These declarations must be uploaded on an official government website to improve transparency. Pakistan has also committed to gradually extending this disclosure regime to senior provincial officials.

Enhanced Oversight and Accountability Mechanisms

The IMF has called for stronger oversight of high-risk government departments . By October 2026 , Pakistan must publish action plans for 10 departments identified through corruption risk assessments. The National Accountability Bureau (NAB) will coordinate implementation, while provincial anti-corruption agencies are to receive expanded powers, including access to financial intelligence and authority to conduct independent investigations.

Economic and Structural Reform Measures

Beyond governance, the IMF has pushed for tax administration reform , directing Pakistan to submit a roadmap for restructuring its revenue board and adopt a medium-term tax strategy . Additional conditions include reviewing remittance costs , reducing cross-border payment barriers, liberalising the sugar sector , and cutting losses in the power sector to enable private participation in distribution companies.

Fiscal Risks and External Dependence

The IMF has warned that failure to meet revenue targets could trigger a mini-budget , underscoring ongoing fiscal fragility. Pakistan’s reliance on multilateral financing remains high, highlighting doubts about its capacity to sustain reforms independently.

Exam Oriented Facts

• IMF bailout package size: $7 billion

• Disbursements since 2024: ~$3.3 billion

• National Accountability Bureau is Pakistan’s main anti-corruption agency

• IMF programmes combine fiscal, structural and governance reforms