The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan as part of its USD 7 billion Extended Fund Facility programme, focusing on anti-corruption measures, governance reforms, and identifying financial leakages in government departments.
The fresh directives came a day after the IMF released USD 1.2 billion tranche on Thursday under its ongoing loan programme aimed at building climate resilience and macroeconomic stability in Pakistan. With these additions, the total number of conditions imposed by the lending agency has risen to 64 over the past 18 months.
Key Areas Targeted By New Conditions
The 11 new conditions primarily target reducing power sector losses through private participation, ending elite capture of the sugar industry, and uncovering the true cost of foreign remittances, according to the Express Tribune.
Asset Declaration For Bureaucrats
Under the new requirements, Pakistan must publish detailed asset declarations of high-ranking bureaucrats on government websites by December 2026. The measure aligns with the IMF’s push for transparency and aims to identify discrepancies between declared income and accumulated assets.
The government plans to expand this mandate to senior civil servants in provincial services. Additionally, banks will be granted full access to these asset declarations, enabling financial institutions to cross-verify information independently.
Anti-Corruption Action Plans
Pakistan has been directed to publish comprehensive action plans to curb corruption in 10 specifically identified government departments. The National Accountability Bureau has been assigned to lead and coordinate the development of these action plans.
At the provincial level, anti-corruption establishments will receive enhanced powers, including access to financial intelligence and authority to conduct financial investigations for corruption offences.
Remittance Cost Analysis
The IMF has mandated a detailed study of remittance costs and identification of bottlenecks in cross-border payments. This focus stems from the fact that remittances from overseas Pakistanis remain the country’s largest source of foreign financing.
Pakistan must submit an action plan by May 2025, as remittance-related costs are projected to reach USD 1.5 billion in the coming years. The IMF suspects inefficiencies and leakages are preventing Pakistan from maximizing this critical revenue stream.
Sugar Sector Liberalization
The lending agency has required Islamabad to adopt a national policy for sugar market liberalization by June 2026 to prevent elite capture of the industry. The policy must include comprehensive recommendations on licensing procedures, price controls, and import-export permissions.
The sugar sector has long been criticized for monopolistic practices that benefit a small elite while keeping domestic prices artificially high.
Power Sector Reforms
Among the conditions, Pakistan must also implement measures to reduce losses in the power sector through increased private sector participation. Circular debt in the energy sector remains one of Pakistan’s most persistent economic challenges.
Disbursement Status
The IMF has disbursed USD 3.3 billion to Pakistan so far under the 39-month programme approved in September 2024. The programme aims to support macroeconomic stabilization and implement long-term structural reforms for climate resilience.
Pakistan is scheduled to receive the remaining tranches contingent upon meeting quarterly performance targets and implementing the prescribed structural reforms.
