Will the IMF Review Pakistan's Funding in the Second Half of 2025 Amid 11 New Conditions?
Click to start listening
Synopsis
As the IMF gears up for its next funding review of Pakistan in 2025, new conditions have been introduced. This assessment could have significant implications for the country's economic strategy and stability. Stay tuned for insights on what this means for Pakistan's fiscal future.
Key Takeaways
- IMF's next review for Pakistan is set for late 2025.
- 11 new conditions imposed on Pakistan for bailout access.
- Focus on fiscal consolidation and economic reform.
- India raises concerns over the implications of the bailout.
- Ongoing discussions on energy sector reforms.
New Delhi, May 24 (NationPress) The International Monetary Fund (IMF) is anticipated to perform its next funding assessment for Pakistan in the latter part of 2025.
An official statement from the IMF indicates that it will continue discussions with Pakistani authorities to finalize the terms for the fiscal year 2026 budget.
"The upcoming mission regarding the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) reviews is projected for the second half of 2025," the IMF stated.
An IMF team, led by Nathan Porter, has recently wrapped up a visit focusing on recent economic developments, program execution, and the budget strategy for fiscal year (FY) 2026.
Porter remarked, "We engaged in fruitful discussions with the authorities concerning their FY2026 budget proposals and the broader economic policy, as well as the reform agenda supported by the 2024 EFF and the 2025 RSF."
The authorities reiterated their dedication to fiscal consolidation while ensuring that social and priority expenditures are protected, targeting a primary surplus of 1.6 percent of GDP for FY2026.
Additionally, the discussions included ongoing reforms in the energy sector to enhance financial viability and reduce the high-cost structure of Pakistan's power sector, along with other structural changes to nurture sustainable growth and create a fair business environment, according to the IMF.
India has expressed its gratitude for the 11 new conditions imposed by the IMF on Pakistan, clarifying that it does not oppose financial assistance intended for genuine developmental needs.
Simultaneously, New Delhi raised serious concerns regarding the timing of the recent bailout package, suggesting that the funds may have inadvertently supported Pakistan's increasing defense expenditures.
This bailout coincided with Pakistan's response to India's Operation Sindoor—a military action targeting terror infrastructure within Pakistan and Pakistan-occupied Kashmir (PoK).
India urged a reconsideration of the bailout, given that Pakistan permits terrorists to operate from its territory, facilitating state-sponsored attacks against Indian citizens.
The IMF has set forth 11 new conditions for Pakistan to fulfill before the next tranche of its bailout package can be released, as the nation continues to provide refuge for terrorists.
Point of View
It is important to note that the ongoing dialogue between the IMF and Pakistani authorities reflects a commitment to fiscal responsibility and economic reform. While the additional conditions may be seen as stringent, they are essential for ensuring that Pakistan's economy stabilizes and grows sustainably, considering the global economic landscape.
NationPress
20/07/2025
Frequently Asked Questions
What are the new conditions imposed by the IMF on Pakistan?
The IMF has imposed 11 new conditions aimed at ensuring fiscal responsibility and economic reforms, which Pakistan must meet to receive the next tranche of its bailout package.
When is the next IMF funding review for Pakistan scheduled?
The next funding review by the IMF for Pakistan is expected to occur in the second half of 2025.
What impact could the IMF's conditions have on Pakistan's economy?
The conditions set by the IMF may lead to necessary reforms that could stabilize and enhance Pakistan's economic prospects in the long run.
How does India's stance affect Pakistan's IMF negotiations?
India has expressed concerns over the timing of the bailout, suggesting that it may indirectly support Pakistan's defense spending amidst rising tensions in the region.
What reforms are being discussed between the IMF and Pakistan?
Discussions include fiscal consolidation, energy sector reforms, and structural changes aimed at fostering sustainable economic growth and a fair business environment.
