The International Monetary Fund (IMF) has introduced 11 new conditions in Pakistan’s $7 billion bailout package. This includes the requirement for the National Assembly to approve the new budget in alignment with IMF agreements, and amendments to laws governing special economic and technology zones.
The government has assured that the fiscal year 2026-27 budget will be approved in accordance with IMF stipulations. This marks the second instance of such a condition being accepted under the current program. The total number of conditions now stands at 75, impacting all sectors of economic governance and private sector development.
Finance Minister Muhammad Aurangzeb confirmed the commitment to a fiscally consolidated budget during discussions with the IMF’s deputy managing director in Washington. By June 2027, legislative changes to the Special Economic Zones (SEZ) Act and Special Technology Zones Authority Act are expected, phasing out fiscal incentives and altering the authority of various boards in granting tax incentives.
The government also plans to restrict export processing zones from selling goods domestically by September 2026. This change aims to curb tax evasion by industries within these zones. Additionally, 6,000 acres in Karachi will be leased for SEZs, with terms yet to be finalized.
Pakistan will establish the Pakistan Regulatory Registry by June 2027 to improve the business climate, starting with federal regulations and extending to provincial ones. The IMF is also advocating for eased foreign exchange restrictions, with a roadmap for gradual removal underway.
Energy prices will be adjusted regularly, with quarterly tariff adjustments and automatic monthly fuel charges. By January 2027, annual electricity price adjustments will reflect global market volatility, and semi-annual gas tariff adjustments will align with cost recovery.
The Federal Board of Revenue (FBR) will centralize audit processes by June 2026, adopting a standardized audit manual and policy. Public Procurement Regulatory Authority rules will be amended by September 2026 to eliminate preferences for state-owned enterprises in public contracts.
To mitigate the impact of higher energy prices, the Benazir Income Support Programme will increase compensation from Rs14,500 to Rs19,500 starting January 2027, covering projected inflation and increasing benefit generosity.
Published in SouthAsianDesk, April 21, 2026
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