Islamabad, Pakistan – Web Desk: The International Monetary Fund has imposed 11 new conditions on Pakistan for the approval of a $1.2 billion loan tranche under its ongoing financial support programme, according to official documents.
Under the new requirements, Islamabad will need to amend procurement rules governed by the Public Procurement Regulatory Authority to eliminate preferential treatment for state-owned enterprises (SOEs) in the awarding of large public contracts without competitive bidding.
The government has also agreed to implement periodic increases in energy tariffs. Gas prices will be adjusted every six months starting July 2026, while electricity tariffs will be revised annually from January 2027, indicating likely price hikes in the 2026–27 fiscal year.
As part of structural reforms, Pakistan will amend laws related to Special Economic Zones (SEZs) and Special Technology Zones (STZs), gradually phasing out fiscal incentives provided to investors.
The conditions further include amendments to the National Accountability Ordinance and the introduction of a centralized audit case selection system within the Federal Board of Revenue, in line with the Finance Bill 2026.
Additionally, the government has committed to transitioning from profit-based incentives to cost-based mechanisms, with all tax exemptions and financial incentives—including those under the China-Pakistan Economic Corridor—to be phased out by 2035.
The IMF Executive Board is expected to review Pakistan’s progress next month under the $7 billion Extended Fund Facility (EFF) programme and decide on the completion of the third review and the release of the next tranche.
