The International Monetary Fund (IMF) has established 11 additional structural benchmarks for Pakistan as part of its $7 billion bailout program. These conditions are designed to tackle corruption risks, reform the sugar industry, evaluate remittance expenses, enhance governance, and boost the performance of the Federal Board of Revenue (FBR).
On Thursday, the IMF published the staff-level report for the second review of the program. With these new additions, Pakistan now confronts a total of 64 conditions since the start of the bailout agreement a year and a half ago.
As per the new conditions, Pakistan is tasked with making asset declarations of high-ranking federal civil servants available on a government website by December 2026. These declarations aim to pinpoint discrepancies between income and assets.
The initiative will eventually be expanded to senior provincial civil servants, granting banks full access to these records. By October 2026, the government is expected to present an action plan to address corruption vulnerabilities in ten identified departments, guided by institutional risk assessments. The National Accountability Bureau will oversee the development and coordination of these strategies.
Provincial anti-corruption agencies will receive support in financial intelligence and capacity-building for financial investigations. The IMF’s actions follow the Governance and Corruption Diagnostic Assessment, which pointed out deficiencies in legal and governance frameworks.
The conditions for the bailout also pertain to the sugar sector. Pakistan is required to formulate and implement a national policy for sugar market liberalization by June 2026, addressing aspects such as licensing, price controls, import-export permissions, zoning, and clear deadlines. This initiative aims to minimize elite influence in the sector.
Concerning taxation, the IMF has directed Pakistan to finalize a roadmap by December 2025 that outlines priority reform areas, staffing needs, timelines, milestones, revenue impact projections, and key performance indicators (KPIs). Based on this roadmap, the government must enact at least three priority reforms, including legislation, staffing adjustments, and initial KPI reporting.
Additionally, by December 2026, a medium-term tax reform strategy spanning three to five years must be published. This strategy will outline a sequenced approach to tax policy, administration, and legal reforms, governance structures, and a resource plan for execution.
The IMF has also stipulated conditions regarding remittances and financial markets. By May 2026, Pakistan will conduct a thorough assessment of remittance costs and obstacles to cross-border payments. By September 2026, the government will analyze issues affecting the local currency bond market and deliver a strategic action plan.
Energy and state-owned enterprises are also part of the requirements. Preconditions for private-sector involvement in HESCO and SEPCO are to be finalized by December 2026, and public service obligation agreements for the seven largest entities must be signed before the FY27 budget is presented to Parliament.
Additional measures include proposing amendments to the Companies Act of 2017 to enhance compliance, modernize corporate governance, and align regulations with international standards. The government will also issue a concept note on suggested amendments to the SEZ Act, detailing objectives, anticipated outcomes, and KPIs.
The IMF report indicates that Pakistan has fulfilled several prior benchmarks, including fiscal measures in the FY26 budget, the agricultural income tax, and amendments to the Civil Servants Act. Some benchmarks, including action plans rooted in the Governance and Corruption Diagnostic, are recommended to be postponed to December 2025.