New Delhi, April 23: The International Monetary Fund (IMF) has handed Pakistan a sweeping list of 75 conditionalities — including 11 newly added demands — tied to the continuation of its $7 billion Extended Fund Facility (EFF) bailout package. Among the most contentious requirements is a firm commitment to raise electricity and gas tariffs, even as struggling production units face mounting financial pressure, according to a report by The Express Tribune.

IMF's 'Do More' Mandate to Islamabad

The global lender has essentially issued a 'do more, do it within the timeframe' directive to the Pakistani government, signalling zero tolerance for delays in structural reforms. The IMF is insisting that Islamabad honour its earlier pledges without backtracking, particularly on energy pricing reforms that directly affect industrial and domestic consumers.

The report described the new conditionalities as 'startling', warning they represent a significant encroachment on Pakistan's economic sovereignty. Analysts have noted that the conditions reflect the IMF's frustration with Pakistan's historically inconsistent approach to implementing agreed-upon reforms.

Key Demands: SEZ Laws, Tax Incentives, and Export Zones

Pakistan's Finance Minister reportedly agreed during meetings in Washington, D.C. to phase out existing fiscal incentives under the Special Economic Zones (SEZ) Act and the Special Technology Zones Authority (STZA). These concessions mark a significant policy shift for a country that has long used such incentives to attract foreign and domestic investment.

Additional commitments include withdrawing privileges for tax incentive grants and prohibiting export processing zones from selling goods within Pakistan's domestic market. These measures are aimed at levelling the playing field and curbing practices the IMF views as market distortions.

Energy Price Hikes: The Most Contentious Condition

The IMF's insistence on raising electricity and gas prices remains the most politically sensitive demand. Pakistan's industrial sector, already reeling from high input costs and sluggish demand, has repeatedly warned that further tariff hikes could trigger factory closures and job losses.

Despite these concerns, the IMF is holding firm, making the energy pricing commitment a non-negotiable part of the bailout framework. The lender believes that subsidised energy prices have long distorted Pakistan's fiscal balance and must be corrected for long-term economic stability.

Governance and Private Sector Reforms in Focus

Beyond energy and taxation, the 75 conditionalities also target systemic weaknesses in governance, decision-making processes, and private sector development. The IMF has made clear it expects a departure from what the report characterised as 'ad hocism' — the reactive, short-term policy approach that has plagued Pakistan's economic management for decades.

The conditions are designed to enforce structural discipline and align Pakistan's upcoming federal budget with internationally accepted fiscal standards. The 11 new conditionalities must specifically be reflected in the forthcoming budget to demonstrate compliance.

What This Means for Pakistan's Economic Future

Pakistan has been dependent on IMF bailouts for much of its recent economic history, and this latest round of conditions underscores the depth of its fiscal vulnerabilities. Compliance will be closely monitored, with the continuation of the $7 billion EFF package contingent on measurable progress.

With the federal budget season approaching, all eyes will be on whether Islamabad can translate its Washington commitments into concrete legislative and policy action — or whether political pressures at home will once again derail reform momentum. The IMF's next review of Pakistan's programme is expected to serve as a critical checkpoint for assessing compliance with the expanded conditionality framework.