ISLAMABAD: The government has fulfilled 51 IMF conditions before the IMF mission visits Pakistan, while progress is underway on some of the other conditions to be fulfilled soon.
According to the documents, the condition of gas tariff adjustment on a six-monthly basis has been implemented, the condition of not granting new tax exemptions or exemptions has also been fulfilled, tax exemption was granted on government imports of sugar with the permission of the IMF, the budget 2025-26 was passed in accordance with the IMF conditions, while the condition of approval of expenses outside the budget by the parliament has also been fulfilled.
The documents state that the conditions of the fiscal package between the federation and the provinces have been implemented, work is underway on policy measures for the privatization of discos and gencos, the condition of ending incentives on special economic zones by 2035 has been implemented, progress has been made on the condition of reducing government intervention in government institutions, while the condition of enacting legislation for collecting tax on agricultural income has been implemented.
According to the documents, a compliance risk management system has been implemented in Islamabad, Karachi and Lahore, progress has been made in legislation related to the declaration of assets of high-level public officials, and a 1.25 percent average premium between the interbank and open market rates has also been implemented.
The documents further stated that some conditions, including the publication of the Governance and Corruption Assessment Report, were not met. The IMF had first set a deadline of July and then August 2025. The IMF is expected to react strongly if the conditions of the action plan on the Governance and Corruption Assessment are not met.
According to the documents, the provincial governments failed to meet the target of 1.2 trillion cash surplus, the FBR could not meet the tax target of 12.3 trillion rupees last fiscal year, the FBR also failed to collect 50 billion rupees in tax under the Tajir Dost scheme, while the target of amending the laws of 10 government-owned enterprises could not be met.
