IMF bailout conditions on Pakistan:
The International Monetary Fund (IMF) has agreed to give Pakistan a bailout of about \$1 billion. However, this help comes with 11 new conditions that Pakistan must follow. These rules are designed to help improve Pakistan’s economy, but they may also make things tougher for the country in the short term.

IMF bailout conditions on Pakistan:

IMF loans money to countries when they are in financial trouble. But it does not give money for free. In return, the country must follow some economic rules. These rules are meant to make sure the country spends wisely, reduces debt, and builds a stable economy.

Key Points of the IMF Conditions

Here are the 11 major conditions Pakistan must follow:

1. New Federal Budget Approval

Pakistan must pass a ₹17.6 trillion budget for the year 2025-26 that matches IMF’s spending goals. It should include ₹1.07 trillion for development.

2. Tax on Agricultural Income

The government must start collecting taxes from farm income through a new digital system that includes taxpayer registration and better communication.

3. Governance Action Plan

Pakistan must publish a plan to improve government processes, reduce corruption, and follow IMF advice.

4. Inflation Adjustment for Cash Transfers

Pakistan must adjust its welfare schemes every year to keep up with inflation. This ensures poor families continue receiving enough help.

5. Plan for Future Financial Sector

By 2027, the government needs to prepare a clear plan to manage the finance sector after this bailout ends.

6. Electricity Tariff Update

By July 1, 2025, electricity prices must be updated so that energy companies can recover their costs.

7. Semi-Annual Gas Tariff Adjustment

Gas prices must be revised every six months to match the real cost of supply, with the next deadline set for February 15, 2026.

8. Permanent Power Levy

A law must be passed to add a permanent tax on industries using private power sources. This will encourage them to use the national grid.

9. End Cap on Power Debt Surcharge

The current limit on extra charges for electricity bills (₹3.21 per unit) must be removed to reduce power sector losses.

10. End Special Tech Zone Benefits

By 2035, Pakistan must remove all tax breaks for businesses in special technology and industrial zones.

11. Regulation on Used Car Imports

Pakistan must list and manage all restrictions on importing used cars under five years old. The bill must be ready by July 2025.

The IMF’s support gives Pakistan short-term financial relief. But to continue receiving help, Pakistan must follow these strict conditions. The goal is to create a stronger and more stable economy in the long run. However, some of these changes may cause difficulties for the people and businesses in the short term.

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