The International Monetary Fund has added 11 new conditions to Pakistan’s $7 billion bailout programme, intensifying oversight on governance and reforms. The move raises Pakistan’s total compliance requirements to 64 over an 18-month period, according to the IMF’s staff report.
The IMF approved fresh disbursements of about $1.2 billion despite concerns over corruption risks and weak institutions. This includes nearly $1 billion under the Extended Fund Facility and about $200 million through the Resilience and Sustainability Facility.
The approval came with a waiver request for missed performance criteria, highlighting gaps in programme compliance. The IMF said Pakistan showed strong implementation so far, but warned that economic gains remain fragile.
The Fund stressed the need to maintain macroeconomic stability and push reforms in taxation, state-owned enterprises, and the energy sector. Chronic losses and inefficiencies in these areas continue to strain public finances.
Pakistan’s total public debt now exceeds $307 billion, with external liabilities forming a major share. Although fiscal performance improved, inflation pressures persist, partly due to flood-related food shortages.
Foreign exchange reserves rose to $14.5 billion by the end of FY25, but the IMF said buffers remain insufficient. The Fund also urged faster climate-resilience reforms, citing repeated flood risks.
Pakistan’s repeated IMF bailouts raise regional concerns, especially over long-term stability and reform follow-through.
