Pakistan will be required to implement 11 new conditions imposed by the International Monetary Fund (IMF) over the next year under its ongoing financial agreement aimed at stabilising the country’s economy and improving fiscal discipline.
The IMF has directed the Pakistani government to take a series of financial and administrative measures designed to ensure economic transparency, strengthen institutions and maintain budgetary stability.
One of the major conditions requires the federal government to secure parliamentary approval for the upcoming national budget in the new financial year.
The IMF has also instructed Pakistan to keep electricity and gas prices at full cost recovery levels in order to reduce pressure on the national exchequer and limit circular debt in the energy sector.
Under the agreement, the government must issue the annual electricity tariff notification by 15 January 2027, while the semi-annual gas tariff notification is required to be issued by 15 February 2027.
Another condition states that Pakistan must achieve a primary budget surplus equal to two per cent of the country’s gross domestic product during the next fiscal year.
The IMF has also placed emphasis on governance and accountability reforms. Pakistan has been asked to increase the independence and transparency of the National Accountability Bureau (NAB).
Proposed amendments to the NAB Ordinance are to be presented in parliament by January next year.
In addition, the appointment process for NAB’s senior management must be made open, merit-based and competitive.
The IMF conditions further require amendments to the Public Procurement Regulatory Authority (PPRA) rules by September 2026 to improve transparency in public sector procurement.
The agreement also calls for amendments to laws governing Special Economic Zones (SEZ) in order to gradually phase out financial incentives and exemptions.
Another requirement states that Pakistan must issue a semi-annual gas tariff notification under the IMF agreement by 1 July 2026.
IMF’s 11 new conditions:
1) The government will have to get the budget of the new fiscal year approved by the parliament.
2) The government will maintain electricity prices at a cost-recovery level.
3) The government will maintain gas prices at a cost-recovery level.
4) The notification of the annual electricity tariff must be issued by January 15, 2027.
5) The notification of the gas price hike tariff must be issued by February 15, 2027.
6) The primary surplus will be achieved by 2% of GDP in the next fiscal year.
7) NAB’s autonomy and transparency will be enhanced, and amendments to the NAB Ordinance will have to be presented in Parliament by January.
8) An open, merit-based, competitive selection process will be introduced in the appointment of NAB’s senior management.
9) Amendments to the PEPRA Rules will have to be made by September 2026.
10) Special Economic Zones Law will be amended to phase out financial incentives.
11) A notification of half-yearly gas tariffs will have to be issued by July 1, 2026.
