The International Monetary Fund (IMF) has beaten 11 new conditions in Pakistan, including the approval of a new RS17.6 Billion worth, the budget, which increases the additional fee for electricity bills and lifting stripes on the import of more than three -year -old used cars.

The staff level report, which the IMF released on Saturday, also said that “rising tensions between India and Pakistan, if maintained or worsened, could increase the risks of the fiscal, external and reform targets for the program”.

The report also stated that tension between Pakistan and India has increased significantly over the past two weeks, but so far the market reaction has been modest with the stock market that retained most of its recent gains and spreads expansion moderately.

The IMF has shown the defense budget for the next financial year for RS2.414 trillion, which is higher with RS252 billion or 12%. Compared to the IMF’s projection, the government has indicated the award of over RS2.5 trillion or 18% higher budget after India’s naked aggression.

The report revealed that the IMF has beaten 11 more relations with Pakistan for the sake of only $ 7 billion lending and taken the total conditions to 50.

It has introduced a new condition to ensure the “Parliamentary approval of the financial year 2026 budget in accordance with the IMF staff agreement to meet the program goals at the end of June 2025”.

The IMF has shown the total size of the federal budget for RS17.6 trillion, including RS1.07 trillion for development costs. Express Pakinomist had reported a few days ago that the government would present over RS17.5 trillion budget.

The IMF has shown interest on RS8.7 trillion, the primary budget surplus to RS2.1 trillion and the total deficit of RS6.6 trillion.

A new condition has also been introduced for the provinces, where the four federal units will implement the new agricultural tax laws through a comprehensive plan, including the establishment of an operational platform for the processing of returns, taxpayer identification and registration, a communication campaign and an improvement plan for compliance improvement. The deadline for the provinces is June this year.

Under the third new condition, the government will publish a governance plan for governance based on the recommendations of Governance Diagnostic Assessment from the IMF. The purpose of the report is to publicly identify reform measures to tackle critical management vulnerability.

The fourth new condition states that the government will provide an annual inflation adjustment of the unconditional cash transfer program to maintain human real purchasing power

Another new condition says the government will prepare and publish a plan that outlines the government’s strategy after the financial sector after 2027, outlining the institutional and regulatory environment from 2028 onwards.

In the energy sector, four new conditions have been introduced. The government will issue messages about the annual electricity duty, which will re -embrace before July 1 this year to maintain energy products for cost recovery levels.

It will also issue a review of the semi -annual gas rupture to maintain energy rates for cost recovery levels by February 15, 2026, according to the report.

Parliament will also adopt legislation to make a captivity tax order permanently at the end of this month, according to the IMF. The government has increased the cost of the industries to force them to switch to the national electricity grid.

Parliament will also adopt legislation to remove the maximum RS3.21 per year. Unit heal on the supplementary fee of the debt service, which means punishing honest electricity consumers to pay for inefficiency in the electricity sector. The IMF and the World Bank dictated that incorrect energy policies cause accumulation of circular debt beyond the government’s poor government. The deadline for removing the cap is the end of June, according to the report.

The IMF has also introduced a condition for Pakistan to prepare a plan based on the assessment made to fully phase out all incentives in relation to special technological zones and other industrial parks and zones by 2035. The report must be prepared by the end of this year.

In a consumer -friendly state, the IMF has asked Pakistan to submit to parliament all the necessary legislation to cancel all quantitative restrictions on the commercial imports of used motor vehicles (originally only for vehicles less than five years old at the end of July.

Currently, only up to three years old cars can be imported and there are many non-customs barriers to deter imports. The purpose of lifting these limitations is the liberalization of trade and increased affordable vehicles, the IMF said.

In addition to introducing new conditions, the IMF has also made adjustments under the previous conditions.

Program implementation

The IMF has expanded the deadlines for four conditions whose implementation had been delayed. The lender said the government met all seven quantitative performance criteria for late December 2024. These were floors on the net international reserves of SBP; Targeted Cash Transfer Expenses; The number of new tax returns from new files, the ceilings of SBP’s net domestic assets; SBP’s eg -swaps; The General Government’s primary budget deficit; and government guarantees.

The majority of indicative targets were met at the end of December, including the ceilings of the total provincial budget deficit; Net accumulation of arrears of Tax; and Power Sector Payment arrears; Floors on revenue collected by provincial income authorities; And the weighted average maturity of debt papers for local currency. The conditions of the Government’s Health and Education Expenses; Net tax revenue collected by FBR; And net tax revenue collected from retailers under the Tajir Dost scheme was missed, the IMF said.

The respective governments also met nine structural benchmarks, including by approving a national financial pact, which improved protection measures for monetary policy operations and approval of changes in bank resolution and payment law.

But the structural benchmark on provincial agricultural income tax legislation was not fulfilled at the end of October, but this legislation was subsequently passed in February 2025. Another two structural benchmarks were missed due to delays in adopted changes to the officials and SOVEREIGN WEALTH FEAK (SWF) Acts.

Two SBS that relate to the solution of subcontracted banks and to captivity producers were missing, but subsequent political actions are expected to achieve the underlying goals, the IMF said.