IMF imposes 11 new conditions for Pakistan’s bailout program, warns of risks
IMF imposes 11 new conditions on Pakistan's bailout program amid economic challenges, warning of potential risks to fiscal stability goals.
The International Monetary Fund (IMF) has put 11 additional conditions on Pakistan’s bailout package, bringing the number to 50. The major condition is parliamentary approval of a Rs 17.6 trillion budget for the fiscal year 2026, to be synchronized with IMF staff agreements to ensure that program targets are met by June 2025. Pakistan also needs to raise thne debt servicing surcharge on electricity bills and remove restrictions on the import of used cars older than three years.
The IMF’s latest conditions are accompanied by a warning that heightened tensions with India may pose serious risks to the program’s fiscal, external, and reform targets. The IMF’s Staff Level report says that sustained or deteriorating tensions between the two countries could undermine the goals of the bailout program.
Under these new conditions, Pakistan has serious issues in getting the next tranche of the bailout package. The policymakers of the country are left with these demands while dealing with domestic economic issues and regional tensions. The IMF warning underlines the intricacy of the economic situation of Pakistan and the importance of prudent policy choices.
