IMF has put 11 conditions before Pakistan, if it wants a loan then it will have to be accepted; Increased pressure on neighboring countries

IMF 11 Conditions to Pakistan: The International Monetary Fund (IMF) has added 11 new conditions to Pakistan’s $7 billion bailout program, taking the total conditions to 64 in just 18 months. These conditions have been introduced to curb corruption in Pakistan, liberalize the sugar sector and address rising remittance costs. That is why IMF is putting pressure on Pakistan with these conditions. Let us know what these conditions are.

What are the 11 conditions of IMF?

1. Asset declarations of senior federal civil servants will be made public by December 2025. Later it will be extended to the province.
2. Action plan to tackle corruption in 10 high-risk departments.
3. Strong provincial anti-corruption units with access to financial intelligence.
4. Full assessment of remittance costs and disruptions to cross-border payments by May 2025.
5. A Study and Strategy for Local Currency Bond Market Reforms by September 2025.
6. A National Sugar Market Liberalization Policy by June 2025 to end elite capture.
7. A comprehensive FBR reform roadmap with mandatory implementation of KPIs and three priority areas by December 2025.
8. A medium-term tax reform strategy by December 2025.
9. Pre-conditions for private-sector participation in power entities HESCO and SEPCO and signing of PSO agreements.
10. Amendments in the Companies Act and reforms in the SEZ Act.
11. Agreement to implement a mini-budget next year if revenues are low.

The IMF says the new measures are necessary to reduce governance deficiencies, stem losses in the power sector, reform Pakistan’s tax machinery and address structural deficiencies that are hindering economic recovery.

Condition for change in sugar sector

The IMF wants Pakistan to eliminate the influence of the already entrenched class on the sugar industry. Pakistan will have to fulfill certain conditions for this by June 2026. A national policy will have to be made for the liberalization of the sugar market. Reforms related to licensing, price controls, import or export permissions and zoning will have to be agreed upon.

Pressure for reform in finance sector

Pakistan needs to complete an assessment of remittance costs and structural barriers to cross-border payments by May 2026, as remittance costs are estimated to reach $1.5 billion. A separate study on obstacles to the development of the local currency bond market should be completed by September 2026, after which a strategic action plan should be prepared.

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Pressure on Pakistan increased due to 11 conditions

The inclusion of 11 new terms indicates that IMF Pakistan It views reform progress as uneven and inadequate, increasing pressure on officials before committing future funds. For this reason these 11 conditions have been placed on Pakistan.