IMF tightens bailout terms for Pakistan; adds 11 new conditions
What's the story
The International Monetary Fund (IMF) has imposed an additional 11 structural conditions on Pakistan under its $7-billion Extended Fund Facility (EFF). The new conditions, outlined in the staff-level report for the second review released on Thursday, take the total number of compliance requirements to 64 over a span of 18 months. These measures include anti-corruption initiatives, tax reforms, and restructuring of the power sector.
Focus areas
New measures target corruption, governance in Pakistan
The new IMF directives are aimed at combating corruption, improving governance, and reforming the Federal Board of Revenue. A major requirement is the "mandatory public disclosure of asset declarations of all high-level federal civil servants on an official government website by December 2026." This move aims to uncover unexplained wealth and identify discrepancies between declared income and actual assets.
Disclosure extension
Pakistan plans to extend asset disclosure requirement
The Pakistani government intends to extend the asset disclosure requirement to senior provincial officials as well. Commercial banks will be given full access to this information. By October 2026, Pakistan is also required to publish a time-bound action plan for mitigating corruption risks in 10 high-risk departments based on completed institutional risk assessments. The National Accountability Bureau (NAB) will oversee implementation in these vulnerable agencies.
Reform agenda
Additional IMF conditions for Pakistan's economic reform
Other conditions include reviewing remittance costs, advancing tax reforms, and finalizing a roadmap for power-sector privatization. These requirements add to an already demanding reform agenda involving steep energy tariff hikes, aggressive tax measures, and strict monetary and fiscal policies. Pakistan remains heavily dependent on external financing, having secured $3.3 billion from the IMF and World Bank since last year. The next tranche of the bailout is contingent on Pakistan meeting these and other pending commitments.