Pakistan has fulfilled 51 conditions set by the International Monetary Fund (IMF) before the mission’s visit. Most conditions are completed, while work continues on some pending items. The government has also obtained prior IMF approval for conditions not yet fully met.
Documents reveal Pakistan has implemented biannual gas tariff adjustments and avoided new tax exemptions as required. The government granted tax relief on official sugar imports with IMF permission. The 2025-26 budget was passed following IMF guidelines, including parliamentary approval for off-budget expenditures.
Further progress includes fiscal pact compliance between federal and provincial governments and ongoing privatization policy work for DISCOs and GENCOs. The removal of special economic zone incentives until 2035 and legislation for taxing agricultural income have been completed. Compliance risk management systems are now operational in Islamabad, Karachi, and Lahore.
However, some conditions remain unmet. The governance and corruption assessment report publication was delayed, with the IMF having set deadlines in July and August 2025. Failure to act on this could provoke a harsh IMF response. Provincial governments missed the target of Rs1.2 trillion cash surplus, and the Federal Board of Revenue (FBR) failed to meet the Rs12.3 trillion tax target for the last fiscal year.
Additionally, the FBR was unable to collect Rs50 billion under the trader-friendly scheme, and amendments to laws governing 10 state-owned enterprises were incomplete. The government continues working to meet all IMF conditions to secure vital financial support.