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11 IMF Conditions Pakistan Must Meet for Loan Continuation let's find out

 Pakistan is currently navigating a complex economic landscape under a $7 billion loan agreement with the International Monetary Fund (IMF), approved in September 2024. The program aims to stabilize the country's economy through structural reforms and fiscal consolidation. 









Recent Developments

As of May 2025, the IMF has completed the first review of Pakistan’s Extended Fund Facility (EFF) arrangement, leading to the immediate disbursement of approximately $1 billion. This brings total disbursements under the arrangement to about $2.1 billion. Additionally, the IMF approved Pakistan's request for an arrangement under the Resilience and Sustainability Facility (RSF), granting access to around $1.4 billion to support climate resilience efforts .

New Conditions Imposed

The IMF has introduced 11 new conditions that Pakistan must meet to access the next tranche of funds. These conditions include: 


Parliamentary approval of a new Rs 17.6 trillion budget.

Increased debt servicing surcharge on electricity bills.

Lifting restrictions on the import of used cars older than three years.

Tax reforms, including the introduction of income tax on the agricultural sector. 

These measures are designed to enhance fiscal discipline, broaden the tax base, and improve the overall stability of Pakistan's financial framework .


Geopolitical Considerations

The IMF has expressed concerns that escalating tensions between Pakistan and India could pose significant risks to the bailout program's fiscal sustainability and reform objectives. The IMF has warned that failure to maintain regional stability may jeopardize future disbursements .

Outlook

While the IMF's financial support provides temporary relief, Pakistan faces the challenge of implementing stringent reforms amid geopolitical tensions. The success of the bailout program will depend on the government's commitment to meeting IMF conditions and maintaining re

gional stability. 

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