In a move to bolster its economic stability, Pakistan has entered into an agreement with the International Monetary Fund (IMF) that outlines a comprehensive set of reforms and conditions. This collaborative effort aims to secure a $7 billion bailout package and pave the way for sustainable growth.
Pakistan agrees to 11 new IMF conditions to secure the next $1.2 billion tranche under its $7 billion facility.
The commitments include wide-ranging structural reforms covering procurement, taxation, energy pricing, and economic governance, ahead of the IMF Executive Board’s… pic.twitter.com/cR83GNMP6M
— Bloom Pakistan (@bloom_pakistan) April 21, 2026
The agreement, finalized after extensive negotiations, encompasses a broad range of economic and governance measures designed to strengthen Pakistan’s financial framework. Key commitments include:
- Fiscal Responsibility: The government has pledged to secure parliamentary approval for the fiscal year 2026-27 budget, ensuring alignment with IMF recommendations.
- Special Economic Zones (SEZs) Reform: Amendments to the SEZ Act and the Special Technology Zones Authority Act (STZA) will be enacted to phase out existing fiscal incentives and promote a more competitive investment landscape.
- Domestic Market Regulations: Restrictions will be imposed on export processing zones selling goods in the domestic market, addressing concerns about tax evasion.
- Regulatory Transparency: The establishment of the Pakistan Regulatory Registry will create a comprehensive and authoritative source for business regulations, enhancing transparency and streamlining processes.
- Foreign Exchange Flexibility: The central bank will develop a roadmap for the gradual removal of foreign exchange restrictions, promoting greater financial openness.
- Energy Sector Reforms: The government remains committed to regular adjustments in electricity and gas prices, ensuring cost recovery and reflecting global energy market dynamics.
- Tax Administration Enhancement: The Federal Board of Revenue (FBR) will centralize the audit case selection process, adopt a standardized audit manual, and implement a comprehensive audit and integrity risk register.
- Public Procurement Fairness: Amendments to Public Procurement Regulatory Authority rules will eliminate state-owned enterprise preferences in awarding public procurement contracts, fostering greater competition.
- Social Safety Net Strengthening: To mitigate the impact of higher energy prices and taxes, the Benazir Income Support Programme beneficiaries’ compensation will be increased from Rs14,500 to Rs19,500, providing vital support to vulnerable families.
“These reforms reflect Pakistan’s commitment to fiscal discipline, transparency, and sustainable economic growth,” stated a government spokesperson. “We are confident that by working closely with the IMF and implementing these measures, we can unlock our nation’s full potential and create a brighter future for all Pakistanis.”
The IMF has already disbursed $3 billion of the $7 billion package, with the fourth tranche of $1 billion expected to be released in early May.
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