Pakistan will have to meet 11 new reform targets set by the International Monetary Fund under its ongoing loan programme, according to the lender’s latest review report.
The new conditions, known as structural benchmarks, have pushed the total number of reform requirements under the programme to 55. These steps are part of the third review under the Extended Fund Facility and the second review under the Resilience and Sustainability Facility.
At the centre of the new targets is the requirement for parliament to approve the fiscal year 2027 budget in line with IMF understandings. The budget must deliver a primary surplus of 2 percent of GDP by the end of June 2026, aimed at keeping public finances on track.
Focus on governance, revenue and transparency
The IMF has also asked Pakistan to improve how it collects taxes and manages public funds. Authorities are expected to introduce a centralised audit system that focuses on high risk cases by August 2026. Changes to public procurement rules are also planned to remove preferential treatment for state owned enterprises, ensuring open competition by September 2026.
Governance reforms remain a key area. The government is required to amend laws governing the National Accountability Bureau to make senior appointments more transparent and merit based. The watchdog will also need to publish detailed data on investigations and convictions. These steps are expected to be completed by January 2027.
Energy pricing and social protection
The energy sector continues to face strict oversight. Pakistan must carry out regular gas and electricity tariff adjustments to keep prices aligned with actual costs. Gas tariffs will be revised twice, in July 2026 and February 2027, while electricity tariffs will see an annual adjustment in January 2027.
On the social side, the IMF has asked the government to protect low income households by maintaining the real value of cash transfers under the Kafaalat programme. Payments will be adjusted regularly to keep pace with inflation.
Exchange rate and investment reforms
The central bank, State Bank of Pakistan, has been tasked with preparing a plan for gradually easing controls in the foreign exchange market by March 2027. This roadmap will consider economic stability and financial risks before any changes are made.
Further reforms are also planned to reshape investment incentives. The government will amend laws related to Special Economic Zones and technology zones to phase out tax breaks over time and shift towards more sustainable, cost based incentives.
The IMF said these benchmarks are designed to support economic stability, improve transparency and create a more predictable business environment as Pakistan continues its reform programme.
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