The International Monetary Fund (IMF) has introduced 11 new conditions for Pakistan to secure the next $1.2 billion installment under its $7 billion Extended Fund Facility (EFF) program.
One of the key requirements is energy sector reform. The government has agreed to implement semi-annual gas tariff adjustments starting July 2026 and annual electricity tariff revisions from January 2027, signaling likely changes in utility prices in the coming fiscal year.
Another major condition involves phasing out incentives for Special Economic Zones (SEZs), including those under China-Pakistan Economic Corridor. These incentives will gradually end by 2035, shifting from profit-based benefits to cost-based frameworks.
The IMF has also asked Pakistan to reform procurement rules to eliminate preferential treatment for state-owned enterprises in large contracts. Amendments to public procurement regulations are expected by September 2026.
In governance reforms, changes to the National Accountability Bureau law are planned by 2027 to ensure a merit-based and transparent selection process.
On the financial side, the State Bank of Pakistan will prepare a roadmap to gradually liberalize the foreign exchange regime by early 2027, aiming to reduce restrictions and improve market efficiency.
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To improve tax collection, the Federal Board of Revenue will introduce a centralized system for selecting audit cases.
Additionally, social protection will be expanded, with the Benazir Income Support Programme stipend set to increase from Rs14,500 to Rs19,500 by January 2027.
The IMF is expected to review Pakistan’s progress next month, with a mission likely to visit Islamabad to finalize the upcoming budget framework.
