New Delhi
The International Monetary Fund (IMF) has added 11 new conditions for Pakistan to receive a $7 billion loan. These steps come as tensions with India increase, which the IMF says could harm Pakistan’s economy.
The new conditions include passing a ₹17.6 lakh crore national budget, increasing surcharges on electricity bills, and allowing imports of old cars. Pakistan must also get its 2026 budget approved by parliament by June 2025.
One major concern is the growing tension with India. The IMF report says if these tensions continue or get worse, they could damage Pakistan’s economy and its ability to meet reform goals. Despite this, financial markets have reacted calmly so far.
The IMF said Pakistan's defence budget will rise by 12%, but the country plans an even higher 18% increase after the recent border conflict. The government is also being asked to improve tax collection from agriculture and raise public awareness about paying taxes.
A governance action plan must be published based on IMF advice, and cash aid given to poor families should be adjusted for inflation to protect their buying power.
The IMF also asked Pakistan to publish a long-term financial strategy for 2028 and beyond. In the energy sector, four changes are required, including setting new electricity and gas tariffs to reflect actual costs.
Parliament must also pass a law to make the “captive power levy” permanent. These conditions now bring the total IMF demands to 50.