Islamabad: The International Monetary Fund has released its latest detailed report on Pakistan and imposed 11 new structural benchmarks as the country navigates its extended fund facility programme.

These fresh conditions focus heavily on the upcoming fiscal year 2027 budget, energy tariff adjustments, governance reforms and economic liberalisation measures.

According to the IMF staff review, Pakistan has met most fiscal targets in recent months but several tax-related goals and structural reforms remain incomplete.

The new benchmarks bring the total number of conditions under the programme to 55, aimed at strengthening budget discipline, improving the tax system and placing the economy on a sustainable path.

Parliamentary approval of the FY2027 budget in line with IMF staff-level agreement stands as a key requirement. The budget must reflect agreed fiscal targets to unlock further disbursements.

Energy sector reforms feature prominently in the latest conditions. The government will notify semi-annual gas tariff adjustments effective July 1, 2026 and February 15, 2027 to maintain cost recovery levels.

Electricity tariffs will see an annual adjustment notification by January 15, 2027. These moves are expected to reduce circular debt and eliminate unsustainable subsidies.

The IMF has also demanded amendments to the National Accountability Bureau ordinance. These changes aim to enhance NAB’s autonomy and transparency through a merit-based, competitive selection process for senior management.

Officials must submit the proposed amendments to parliament by end-January 2027. Additional steps include publishing investigation rules and annual enforcement statistics.

In the monetary sector, the State Bank of Pakistan has been tasked with preparing a detailed roadmap for gradual foreign exchange regime liberalisation. The plan must be ready by March 2027, including clear sequencing and stability preconditions.

The report notes that Pakistan achieved a historic low fiscal deficit in the first nine months of the current fiscal year. The deficit stood at 0.7 percent of GDP, supported by a strong primary surplus.

Revenues grew while expenditures were contained. However, the IMF stressed that maintaining this momentum requires strict adherence to new benchmarks.

Special Economic Zones and Technology Zones incentives are also under scrutiny. The new conditions call for phasing out existing tax breaks to create a more level playing field.

The government has committed to ending the Rs140 billion gas cross-subsidy system by January 2027. All consumers will eventually pay a uniform average gas tariff, currently estimated around Rs1,750 per MMBtu, with targeted support shifted to the Benazir Income Support Programme for low-income households.

These reforms aim to remove distortions but could translate into higher energy bills for many consumers in the coming months.

Finance Minister Muhammad Aurangzeb and other senior officials have held multiple rounds of talks with the IMF mission in recent weeks. The discussions covered the upcoming budget strategy and reform priorities.

Pakistan is seeking the next tranche of around 1.2 billion dollars under the programme. Approval hinges on satisfactory progress on existing and new benchmarks.

The IMF acknowledged improvements in external buffers and inflation moderation but warned that risks remain elevated due to global commodity price volatility and domestic implementation challenges.

Revenue administration needs further strengthening. The report calls for better tax collection mechanisms and removal of exemptions to broaden the base.

Public procurement frameworks and anti-corruption measures also received attention in the new structural agenda.

For ordinary Pakistanis, the immediate impact may appear in higher gas and electricity bills starting from mid-2026. The government faces the difficult task of balancing reform commitments with protecting vulnerable segments.

Prime Minister Shehbaz Sharif’s administration has repeatedly described the IMF programme as critical for macroeconomic stability. Officials maintain that these tough measures will yield long-term benefits through a more resilient economy.

Implementation timelines are tight. Several benchmarks carry deadlines between July 2026 and March 2027, coinciding with the preparation and execution of the next federal budget.

Analysts following the programme say consistent performance on these conditions could improve Pakistan’s credit outlook and unlock additional bilateral and multilateral financing.

However, delays in energy tariff adjustments or budget deviations could complicate the next review.

The IMF report also emphasises protecting social spending. The generosity of the unconditional cash transfer programme under BISP must be maintained to shield the poor from reform impacts.

As Pakistan prepares the FY2027 budget, these 11 new conditions will shape k