ISLAMABAD, May 15 (Alliance News): The International Monetary Fund has imposed 11 new conditions on Pakistan under its ongoing economic programme, including regular increases in electricity and gas tariffs, higher tax collection targets and stricter governance reforms aimed at stabilising the country’s economy.
According to media reports, the IMF has projected that Pakistan will collect approximately Rs1,727 billion from the public in the form of petroleum levy during the next fiscal year as part of revenue generation measures linked to the programme.
The IMF has also set a tax collection target of Rs15,267 billion for the Federal Board of Revenue, requiring the government to introduce additional taxation measures worth Rs430 billion to meet the ambitious revenue goal.
Out of the proposed new tax measures, around Rs215 billion is expected to be generated through newly imposed taxes, while another Rs115 billion would be collected through enhanced tax enforcement and administrative reforms.
The report said the IMF has also emphasized ensuring the independence and transparency of the National Accountability Bureau as part of broader governance and accountability reforms.
In the energy sector, Pakistan has been directed to issue regular notifications for periodic increases in electricity and gas tariffs to reduce circular debt and improve financial sustainability within the power sector.
Other major conditions reportedly include parliamentary approval of the upcoming federal budget, strengthening anti-corruption mechanisms and improving transparency in government procurement systems.
The IMF has further instructed Pakistan to continue reforms aimed at improving tax revenue administration, maintaining the sponsorship programme and preparing a roadmap for greater autonomy in currency exchange mechanisms.
The international lender has also called for increased regulatory transparency and institutional reforms to improve investor confidence and economic governance.
Under the agreed conditions, amendments to the Public Procurement Regulatory Authority rules have also been made mandatory to enhance transparency and efficiency in public sector procurement processes.
In addition, the IMF has directed Pakistan to gradually eliminate all incentives and tax concessions provided to Special Economic Zones by 2035 as part of broader fiscal reforms aimed at reducing revenue losses.
The establishment of a Pakistan Regulatory Registry at the federal level has also been made mandatory to streamline business regulations and improve the ease of doing business in the country.
Economic experts believe the latest IMF conditions are primarily aimed at restoring macroeconomic stability, improving fiscal discipline and ensuring continuity of structural reforms under the ongoing bailout programme.
Analysts, however, warn that higher taxes and rising energy prices could further increase inflationary pressures on businesses and ordinary citizens already struggling with high living costs.
Experts say the government now faces the difficult challenge of balancing IMF-mandated reforms with public relief measures and economic growth objectives.
The latest conditions come at a time when Pakistan is seeking to strengthen its foreign exchange reserves, stabilize the economy and restore investor confidence amid ongoing fiscal and external sector pressures.
