IMF Tightens Conditions for Pakistan Bailout
Pakistan is facing tighter scrutiny under its ongoing bailout programme with the International Monetary Fund, with the lender imposing a fresh set of conditions linked to governance and corruption reforms. The additional requirements are part of the IMF’s extended financing arrangement aimed at stabilising Pakistan’s fragile economy and ensuring continued financial discipline.
Focus on Corruption and Governance
Under the revised framework, Pakistan has been asked to strengthen anti-corruption mechanisms across federal and provincial levels. The conditions include mandatory disclosure of assets by senior government officials, stronger oversight of public institutions, and improved coordination between anti-corruption bodies and financial intelligence units. The IMF has repeatedly flagged governance weaknesses as a key risk to economic stability in Pakistan.
Economic and Structural Reforms
Beyond corruption-related measures, the IMF has also pressed for reforms in taxation, energy pricing and state-owned enterprises. Pakistan has been directed to reduce losses in the power sector, improve revenue collection, and curb market distortions in sectors such as sugar and agriculture. These steps are intended to address long-standing structural issues that have contributed to recurring balance-of-payments crises.
High Stakes for Pakistan’s Economy
Pakistan remains heavily dependent on IMF support to avoid default and manage external debt obligations. Continued disbursement of funds is tied to meeting all programme benchmarks within stipulated timelines. While the government has said it is committed to reforms, the conditions are politically sensitive and could face resistance domestically.
