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IMF sets 11 new conditions for Pakistan economic reforms

Published on: May 16, 2026 11:31 AM

The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan as part of its ongoing economic reform programme, including further increases in petroleum, gas and electricity prices, according to official reports.

The new requirements also include structural reforms aimed at improving fiscal discipline, strengthening tax collection, and enhancing transparency in key government institutions.

Read More: IMF sets new conditions, signals possible tariff hikes in Pakistan

Under the proposed framework, the IMF has suggested a tax target of Rs15,267 billion for the next fiscal year, which may result in additional taxation measures worth around Rs430 billion. This includes approximately Rs215 billion in new taxes and Rs115 billion expected through improved tax enforcement mechanisms.

The IMF has introduced 11 new conditions for Pakistan under its ongoing financial programme, including future adjustments in gas and electricity tariffs that could increase utility costs for consumers.

Read more details here: https://t.co/rQbxJDdqnN#IMF #Pakistan… pic.twitter.com/dP4N3kPGWd

— The Public Purview (@publicpurviewpk) May 15, 2026

The Fund has also indicated that Pakistan may collect around Rs1,727 billion through petroleum levy in the upcoming fiscal year, placing additional financial pressure on consumers already facing high fuel costs.

Among the structural benchmarks, the IMF has stressed the need for regular increases in gas and electricity tariffs, approval of the federal budget through parliament, and reforms in public procurement and anti-corruption frameworks.

The conditions also include strengthening the autonomy and transparency of the National Accountability Bureau (NAB), improving tax administration, and maintaining the continuation of the Benazir Kafaalat cash transfer programme for low-income households.

Other reforms proposed by the IMF include developing a roadmap for gradual currency exchange liberalisation, improving regulatory transparency, and amending Public Procurement Regulatory Authority (PPRA) rules.

The Fund has further recommended phasing out incentives for Special Economic Zones by 2035 and establishing a Pakistan Regulatory Registry to oversee business regulations for federal and Islamabad-based operations.

Energy sector reforms are a major focus of the package, with requirements for regular notifications of gas and electricity price adjustments on a scheduled basis.

Read More: IMF says Pakistan’s economic recovery holds despite regional risks

Officials say these conditions aim to stabilise Pakistan’s macroeconomic situation, improve revenue generation, and reduce fiscal deficits. However, critics argue that repeated price hikes could further increase inflationary pressure on households.

The new set of conditions highlights the continuing dependence of Pakistan on IMF support amid ongoing challenges in economic growth, energy pricing, and revenue collection.

Filed Under: Business, World Tagged With: energy reforms, Fiscal Policy, IMF, Latest, Pakistan economy, petroleum prices, taxation

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