IMF Announced Conditions for Pakistan Loan
The UN agency noted that a further deterioration of ties with India could “heighten risks to the fiscal, external and reform goals of the programme”.
The International Monetary Fund has attached seven conditions to the 2 billion loan in total that it will disburse to Pakistan following India ‘s Operation Sindoor, media reports have said.
The UN agency noted that a further deterioration of ties with India could “heighten risks to the fiscal, external and reform goals of the programme”.
The Financial Express reported that the 11 new conditionalities included approval of a new Rs 17.6 trillion worth budget for 2025-26 in line with IMF staff agreement to meet programme targets.
Quoting the Pakistan-based Express Tribune, the list of changes also include publishing a governance action plan, and notifications of electricity tariff rebasing and gas tariff adjustments. These conditions have to be met by the country before its next review of the Extended Fund Facility in September.
Other conditions require Pakistan to implement the new Agriculture Income Tax laws through a comprehensive plan, including the establishment of an operational platform for processing returns, taxpayer identification and registration, a communication campaign, and a compliance improvement plan. The deadline is June 2025.
Pakistan has also been asked to publish a governance action plan based on the recommendations of the Governance Diagnostic Assessment by the IMF.
