IMF tightens conditions, adds 11 new benchmarks for Pakistan

ISLAMABAD – International Monetary Fund (IMF) has introduced 11 new Structural Benchmarks (SBs) for Pakistan, expanding programme conditions to 55 as part of its ongoing Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) reviews, according to an official report. The new requirements include parliamentary approval of the fiscal year 2027 budget in line with IMF staff agreements, aimed at achieving agreed fiscal targets, including a primary surplus of 2 percent of GDP. The deadline for this benchmark has been set for end-June 2026. The IMF has also set targets for strengthening revenue administration by requiring the preparation of an audit manual and policy framework to centralise audit case selection through a risk-based system. A compliance report on high-risk cases will also be required, with implementation due by end-August 2026. In addition, Pakistan has been asked to amend Public Procurement Regulatory Authority (PPRA) rules to remove preferential treatment for state-owned enterprises in contract awards, ensuring competitive and transparent procurement processes. This benchmark is to be completed by end-September 2026. On governance reforms, the IMF has called for enhanced autonomy and transparency of the National Accountability Bureau (NAB). This includes submitting amendments to the NAB ordinance to establish a merit-based, competitive selection process for senior leadership, along with publication of investigation and prosecution procedures and annual performance statistics. The deadline for these reforms is end-January 2027. The programme also includes social sector conditions requiring annual inflation-based adjustments to the Benazir Income Support Programme’s Kafaalat cash transfers to preserve purchasing power. In the monetary and financial sector, the State Bank of Pakistan (SBP) has been directed to prepare a roadmap for gradual liberalisation of the foreign exchange regime, including sequencing reforms in line with ma