IMF Tightens Bailout Terms for Pakistan, Imposes 11 New Conditions
Agency:
Last Updated:
A new condition has also been imposed on the provinces where the four federating units will implement the new Agriculture Income Tax laws through a comprehensive plan.
The International Monetary Fund (IMF) has slapped 11 new conditions on Pakistan for the release of the next tranche of its bailout programme and warned that tensions with India could heighten risks to the scheme's fiscal, external, and reform goals, according to a media report on Sunday.
The new conditions imposed on Pakistan include the parliamentary approval of a new Rs 17.6 trillion budget, an increase in the debt servicing surcharge on electricity bills and lifting restrictions on import of more than three-year-old used cars.
The Express Tribune newspaper said the Staff Level report, which the IMF released on Saturday, also said that "rising tensions between India and Pakistan, if sustained or deteriorate further, could heighten risks to the fiscal, external and reform goals of the programme".
The report further stated that tensions between Pakistan and India have risen significantly over the past two weeks, but so far, the market reaction has been modest, with the stock market retaining most of its recent gains and spreads widening moderately.
advetisement
The IMF report has shown the defence budget for the next fiscal year at Rs 2.414 trillion, which is higher by Rs 252 billion or 12%.
Compared to the IMF's projection, the government has indicated allocating over Rs 2.5 trillion or an 18% higher budget, after confrontation with India early this month.
India carried out precision strikes under 'Operation Sindoor' on terror infrastructure early on May 7 in response to the April 22 Pahalgam terror attack that killed 26 people. Following the Indian action, Pakistan attempted to attack Indian military bases on May 8, 9 and 10.
India and Pakistan reached an understanding on May 10 to end the conflict after four days of intense cross-border drone and missile strikes.
The Express Tribune report said that the IMF slapped 11 more conditions on Pakistan, taking the total conditions to 50.
It has imposed the new condition of securing "parliamentary approval of the fiscal year 2026 budget in line with the IMF staff agreement to meet programme targets by end-June 2025".
The IMF report has shown the total size of the federal budget at Rs 17.6 trillion, including Rs 1.07 trillion for development spending.
A new condition has also been imposed on the provinces where the four federating units will implement the new Agriculture Income Tax laws through a comprehensive plan, including the establishment of an operational platform for processing returns, taxpayer identification and registration, a communication campaign, and a compliance improvement plan.
The deadline for the provinces is June this year.
According to the third new condition, the government will publish a governance action plan based on the recommendations of the Governance Diagnostic Assessment by the IMF.
The purpose of the report is to publicly identify reform measures to address critical governance vulnerabilities.
Another new condition states that the government will prepare and publish a plan outlining the government's post-2027 financial sector strategy, outlining the institutional and regulatory environment from 2028 onwards.
Advertisement
In the energy sector, four new conditions have been introduced. The government will issue notifications of the annual electricity tariff rebasing by July 1st of this year to maintain energy tariffs at cost recovery levels.
It will also issue a notification of the semi-annual gas tariff adjustment to maintain energy tariffs at cost recovery levels by February 15, 2026, according to the report.
Parliament will also adopt legislation to make the captive power levy ordinance permanent by the end of this month, according to the IMF. The government has increased the cost for the industries to force them to shift to the national electricity grid.
Parliament will also adopt legislation to remove the maximum Rs3.21 per unit cap on the debt service surcharge, which is tantamount to punishing honest electricity consumers to pay for the inefficiency of the power sector.
The IMF and the World Bank dictated that wrong energy policies are causing the accumulation of the circular debt in addition to the government's bad governance. The deadline to remove the cap is the end of June, according to the report.
advetisement
top videos
View All
The IMF has also imposed a condition that Pakistan will prepare a plan based on the assessment conducted to fully phase out all incentives in relation to Special Technology Zones and other industrial parks and zones by 2035. The report has to be prepared by the end of this year.
Finally, in a consumer-friendly condition, the IMF has asked Pakistan to submit to the Parliament all required legislation for lifting all quantitative restrictions on the commercial importation of used motor vehicles (initially only for vehicles less than five years old by the end of July. Currently, only cars up to three years old can be imported.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI)
Watch India Pakistan Breaking News on CNN-News18. Get breaking news, in-depth analysis, and expert perspectives on everything from geopolitics to diplomacy and global trends. Stay informed with the latest world news only on News18. Download the News18 App to stay updated!
tags :
imf IMF loan to Pakistan india Pakistan
Location :
Islamabad, Pakistan
First Published:
May 18, 2025, 12:54 IST
News world IMF Tightens Bailout Terms for Pakistan, Imposes 11 New Conditions
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
27 minutes ago
- Time of India
Gram panchayat in Sambhajinagar waives taxes for families having only girl children
Chhatrapati Sambhajinagar: The gram panchayat of Balapur village, located on the outskirts of Chhatrapati Sambhajinagar city, has approved a resolution providing property and water tax exemptions for families with one or two daughters only. Due to urban expansion, numerous new residential areas now fall under the Balapur gram panchayat's jurisdiction, enabling families with only daughters to benefit from this tax relief. Balapur sarpanch Neeta Girhe said this tax waiver initiative seeks to eliminate the preference for sons and tackle gender bias prevalent in society. "In many families, a girl child is still considered a liability, and we aim to break this notion. Waivers in taxes will help families save a considerable amount of money every year, which they can use for the proper upbringing of the girls," she said. The tax exemption extends to households headed by widows. Property tax rates in Balapur vary according to house dimensions, with combined property and water taxes ranging from Rs 3,000 to Rs 4,000 annually. The village of Balapur, with approximately 4,000 residents, includes about 15 large housing societies that have emerged recently as an annexe of Chhatrapati Sambhajinagar. "Along with waivers in taxes for families with only girl children, we have also contemplated offering Rs 5,000 one-time aid to families after the birth of a girl child. The scheme will be rolled out soon after necessary financial calculations," Girhe said. Additionally, the Balapur gram panchayat has implemented several other measures, including prohibitions on liquor, gutka, and playing cards, alongside the deployment of CCTV surveillance throughout the village. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
Time of India
33 minutes ago
- Time of India
Despite May losses, bumper summer onion production this year in Nashik
Nashik: The summer onion production in Nashik district has shown a significant increase of 63% during the 2024-25 (Dec-April) season in comparison to the previous year. The state agriculture department reports that Nashik district's summer onion yield reached approximately 59 lakh tonnes in 2024-25, while the previous season (Dec-April of 2023-24) recorded 36 lakh tonnes. State agriculture department officials reported an increase in summer onion cultivation area from 1.4 lakh hectares in 2023-24 to 2.5 lakh hectares in 2024-25, with an average yield of 23.4 tonnes per hectare. Despite approximately 5% damage from May rainfall, the season produced abundant crops, ensuring an adequate supply until the next harvest in Oct. Unlike kharif and late kharif onions harvested between Oct and Feb, which deteriorate within a month, summer onions harvested in March-April maintain quality for six to seven months. This extended storage capability allows farmers to hold their produce and sell at APMCs when prices are favourable or when they require funds. The market relies on stored summer onions from May until mid-Oct, when fresh kharif crops arrive. Current wholesale price at the Lasalgaon APMC stands at Rs 1,600 per quintal, compared to Rs 1,500 per quintal during the same period last year. The expected wholesale price range is between Rs 1,400 and Rs 2,000 per quintal. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New South Wales Pensioners Are Eligible For Invisible Hearing Aids Best Hearing Aids Undo "The cost of production for growing onions is around Rs 1,800 per quintal," states Bharat Dighole, the president of the Maharashtra Onion Growers' Association. With wholesale prices ranging between Rs 1,050 and Rs 1,600 per quintal over recent months, farmers face losses. Dighole advocated for a Rs 2,000 per quintal govt grant for farmers who sold their produce at a lower rate due to a drop in wholesale prices caused by faulty govt policies. Dighole further said Centre has already announced the procurement of 3 lakh tonnes under price stability funds to create a buffer stock through the central govt agencies — National Agricultural Co-operative Marketing Federation of India Ltd (Nafed) and the National Cooperative Consumers' Federation of India Limited (NCCF). "We want both the central govt agencies to procure onions directly from farmers at the APMCs at the price of Rs 3,000 per quintal," said Dighole. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
Time of India
33 minutes ago
- Time of India
Lucky draw fraud: Bengaluru wins Rs 1.5 lakh refund from travel agency
Bengaluru: What began as a lucky draw entry at a mall in Yelahanka turned into an expensive ordeal for Hafeez Pasha. Lured with promises of silver coins, movie tickets, and a free travel package, Pasha visited the office of Fala Holidays — only to be pressured into paying for an expensive holiday membership he never wanted. The Bangalore Urban district consumer disputes redressal commission has now found the company guilty of unfair trade practices and ordered a refund. It all started a year back when Pasha, a 30-year-old resident from Yelahanka, visited RMZ Galleria Mall on Oct 14, 2023, where an employee of Fala Holiday Packages, a travel agency with its head office in KR Pura, asked him to fill out a form for a lucky dip. He did so casually in the morning. By evening, he got a call from Tasmiya, an executive, claiming he'd won the draw — free movie tickets, a silver coin, and a travel package. To collect the gifts, she asked him to visit their office in Yelahanka New Town. Pasha and his wife walked in expecting freebies but were instead pitched expensive travel memberships, ranging from Rs 1.5 lakh to Rs 3 lakh. Despite saying he couldn't afford it, he said the staff, especially one Javid, pressured him to sign up for a Rs 1.5 lakh package that promised 21 days of holiday stays and 10 day-out trips. He paid the amount via credit card the same day, along with Rs 3,000 as an admin fee. A welcome mail followed, along with a membership card. Soon, the agency began pushing for costly upgrades. When Pasha requested a trip to the Andamans a month later, the agency declined without giving a clear reason. Multiple follow-ups went unanswered. Feeling cheated, Pasha alleged the agency used similar tactics on others and pointed out several pending cases against it in Bengaluru courts. Meanwhile, he continued to pay EMIs and interest on the credit card payment. A legal notice sent in Sept 2024 was ignored. Fed up with empty responses, he filed a consumer complaint on Nov 13, 2024, alleging deficiency in service. When the case reached the consumer commission, the agency failed to appear despite notice and was placed as ex-parte. After going through all documents (payment receipts, membership letter), the commission observed deficiency in service and unfair trade practices by the travel agency. A legal notice sent by the complainant was ignored by the travel agency, further adding to the agency's lapses. The commission said, "It is evident that the agency misled the public with attractive offers at malls, then forced them into unwanted memberships and further, they did not honour promised services, which makes Pasha rightfully entitled to a refund." On March 29, 2025, it ordered Fala Holiday Packages to refund Rs 1.5 lakh, which includes Rs 3,000 of admin fee at an interest of 10% from the day payment was made. It also asked to pay Rs 25,000 as compensation, Rs 10,000 punitive damages to the consumer welfare fund, and Rs 10,000 as litigation costs. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
