While approving the release of a tranche of about $1.2 billion after the successful second review of the Extended Arrangement under the Extended Fund Facility for Pakistan, the IMF has given Pakistan the following 11 more targets.
1. Pakistan is required to publish the asset declarations of high-level federal civil servants on a government website by December 2026 to identify income–asset mismatches.
· The purpose is to identify mismatches between income and assets.
· The obligation will later be expanded to senior provincial civil servants, while banks will be given full access to these declarations.
2. By October 2026, Pakistan must also publish a detailed action plan addressing corruption vulnerabilities across 10 high-risk departments, based on institutional risk assessments.
· The National Accountability Bureau will lead and coordinate the development of action plans for agencies identified as facing the highest risks.
3. To strengthen provincial capacities to mitigate corruption risks, provincial anti-corruption establishments will be empowered to receive financial intelligence and continue receiving capacity-development support for financial investigations of corruption offences within their jurisdiction.
4. Pakistan has to complete a comprehensive assessment of remittance costs and structural impediments to cross-border payments, complemented by an action plan by May 2026.
· By September 2026, the government will conduct a comprehensive study of bottlenecks hindering local currency bond market development and publish a strategic action plan to address required improvements.
5. To break the elite capture of the sugar industry, the federal and provincial governments have to agree, and the federal cabinet to adopt, a national policy for sugar market liberalization by June 2026.
· The policy must include recommendations on licensing, price controls, import and export permissions, zoning and clear implementation timelines.
6. The government is expected to finalize a roadmap by end-December to prioritize reforms; assess staffing requirements and roles; set timelines and milestones; estimate revenue impacts and determine key performance indicators (KPIs) to monitor progress.
7. Based on this roadmap, the government must complete all actions necessary to fully implement at least three priority areas agreed with IMF staff, including any required subordinate legislation, staff hiring and allocation, and initial KPI reporting.
8. By December 2026, the government must also develop and publish a comprehensive medium-term tax reform strategy, including a sequenced roadmap of tax policy, administration and legal reforms, clear governance arrangements and a resource plan for implementation.
9. By the same deadline, the government will finalize preconditions for private-sector participation in HESCO and SEPCO and sign public service obligation (PSO) agreements with each of the seven largest entities before the next budget is submitted to Parliament.
10. The government will also prepare and submit to Parliament amendments to the Companies Act, 2017, to strengthen compliance for unlisted firms, modernize corporate governance structures and align regulations with international best practices.
11. The government has agreed to the need for a mini-budget if revenues fall short of expectations by end-December 2025.
These 11 new loan conditions — or targets, as the Finance Ministry says – should not be met with defiance and indignation, but with profound national introspection. Public asset declarations for senior bureaucrats, action plans against corruption in ten high-risk departments and the breakup of the elite-captured sugar cartel are the basic pillars of a functional state that we have failed to erect. The IMF estimates that tackling elite privilege could boost Pakistan's GDP by over 5%, which is in itself reason enough to follow through. Inefficiencies, corruption and mismanagement in these problem areas have cost taxpayers billions of rupees and also taken a heavy non-monetary toll on the country. The path forward requires reforms.
