IMF Sets Conditions for $1.2bn Pakistan Loan Release

International Monetary Fund Approves $1.2 Billion Tranche Conditional to Pakistan Meeting New Requirements

The International Monetary Fund (IMF) has approved the next $1.2 billion tranche under the $7 billion bailout package, contingent on Pakistan meeting additional requirements set by the IMF.

Officials say these new conditions bring the total number of conditions for the bailout package to 75, including amendments to the Public Procurement Regulatory Authority (PPRA) rules aimed at ending non-competitive bidding practices in government contracts.

Energy sector reforms are also part of the program, with gas prices adjusted every six months starting July 2026 and electricity tariffs revised annually beginning January 2027. An increase in energy and gas prices is expected during the fiscal year 2026-27.

New structural benchmarks require amendments to laws related to Special Economic Zones and Special Technology Zones, with plans for gradual phasing out of financial incentives provided to these zones by 2035. The government has also agreed to implement a centralized system for selecting audit cases in the Federal Board of Revenue (FBR) and amend the NAB Ordinance.

Under the Finance Bill 2026, profit-based facilities will be replaced with a cost-based system, aiming to eliminate all financial incentives by 2035. Additionally, incentives provided under the China-Pakistan Economic Corridor (CPEC) are set to end by 2035 as part of these reforms.