Pakistan imf loan: The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan to release the next installment of its relief program. Along with this, the IMF has warned Pakistan that stress with India may increase the risk for fiscal, external and improvement goals of the scheme. This information has been given in media reports on Sunday (May 18, 2025).
The new terms imposed on Pakistan include the approval of the Parliament for the new budget of Rs 17,600 billion, increase in loan payment overload on electricity bills and removing the ban on import of more than three years old. The ‘Express Tribune’ newspaper report said that the employee level report released by the IMF on Saturday (May 17, 2025) also states that increasing stress between India and Pakistan may increase the risk for fiscal, external and improvement goals of this program.
Pakistan will increase defense budget amid conflicts with India
The report further states that the tension between Pakistan and India has increased significantly in the last two weeks, but till now, the market response has been modest and the stock market has retained most of its recent benefits. The IMF report shown the defense budget of Rs 2,414 billion for the next financial year, which is Rs 252 billion or 12 percent more. Compared to the IMF estimate, the government has indicated allocating Rs 2,500 billion or 18 percent more for the defense sector after increasing conflict with India earlier this month.
50 conditions have been imposed on Pakistan so far
In response to the Pahalgam terror attack on 22 April, India carried out attacks on terrorist bases under the ‘Operation Sindoor’ in Pakistan on the intervening night of May 6 and 7. After this, Pakistan also tried to attack the Indian military bases on May 8, 9 and 10. On May 10, it was agreed to stop military action between the two countries. The report of the Express Tribune states that the IMF has now imposed 11 more conditions on Pakistan. In this way, 50 conditions have been imposed on Pakistan so far.
What conditions have been imposed
The new conditions include the approval of Parliament for the budget for the next financial year. The IMF report said that Pakistan’s total budget size is Rs 17,600 billion rupees. Of this, 1,0700 billion rupees will be for development works.
A new condition has also been imposed on the provinces. This will implement the four federal units through a comprehensive scheme, including the establishment of an operational platform for returns processing, taxpayer identity and registration, communication campaign and compliance improvement scheme. Under this condition, the deadline for the provinces is till June.
Another new condition is that the government will publish a plan to operate the work on the recommendations of assessment of improving IMF operations. Apart from this, another condition is that the government will designed and publish the strategy of the financial sector after 2027. The IMF has also imposed four new conditions for the energy sector.
Also read: Pakistan has worn the heels for the loan from IMF, 20 times more money than India’s account, not even returning