Pakistan’s $7 Billion IMF Bailout Faces Tighter Conditions, 11 New Reforms Imposed; Fund Release Conditional

New Delhi: The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan’s ongoing USD 7 billion Extended Fund Facility (EFF), bringing the total number of binding obligations to 64 in just 18 months, according to the IMF’s staff-level report for the second review. These new measures are part of the IMF’s efforts to ensure Pakistan meets its reform targets and strengthens its economic framework.

Focus on Governance and Anti-Corruption

The latest conditions focus mainly on governance reforms and anti-corruption measures, areas the IMF has repeatedly highlighted as weak in Pakistan. One key requirement is the mandatory public disclosure of asset declarations for all high-level federal civil servants on an official government website by December 2026. This aims to identify unexplained wealth and discrepancies between declared income and assets.

Provincial Officials and Banks Involved

The IMF has also extended this asset-declaration requirement to senior provincial officials. Moreover, commercial banks must be granted full access to these declared data, enabling better monitoring and transparency in financial transactions.

Time-Bound Anti-Corruption Action Plan

By October 2026, Pakistan must publish a time-bound action plan to address corruption risks in 10 high-risk government departments. These plans will be based on institutional risk assessments, with the National Accountability Bureau (NAB) coordinating implementation in the most vulnerable agencies.

Challenging Reform Environment

These new measures add to an already strict reform framework that includes steep energy tariff increases, aggressive tax collection targets, and tight fiscal and monetary policies. With the USD 7 billion programme now in its second year, Pakistan is under one of the most intensive IMF oversight regimes in decades, with 64 prior actions, structural benchmarks, and indicative targets to meet.

Next Tranche Contingent on Compliance

The release of the next tranche of the bailout funds will depend on Pakistan meeting these new and pending benchmarks, highlighting the IMF’s focus on institutional reforms and fiscal discipline as prerequisites for continued financial support.