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Key Points

The International Monetary Fund (IMF) is set to conduct a critical funding review for Pakistan in the second half of 2025, with eleven new conditions attached to the potential bailout. Nathan Porter, leading the IMF mission, highlighted constructive discussions around fiscal year 2026 budget proposals and broader economic policy reforms. Pakistan has committed to fiscal consolidation and aims to achieve a primary surplus of 1.6% of GDP, while also addressing energy sector inefficiencies. India has expressed concerns about the timing and potential indirect support of Pakistan's defense spending through this financial assistance.

Key Points: IMF Pakistan Funding Review 2025 Amid 11 New Conditions

  • IMF planning comprehensive funding review for Pakistan in second half of 2025
  • Eleven new conditions linked to economic and structural reforms
  • Pakistan aims for 1.6% primary GDP surplus in fiscal year 2026
  • Energy sector and investment environment under IMF scrutiny
2 min read

IMF likely to review Pak funding in 2025 second half amid 11 new conditions

IMF to review Pakistan funding in 2025, imposing 11 new conditions while addressing economic reforms and fiscal challenges

"We held constructive discussions with the authorities on their FY2026 budget proposals - Nathan Porter, IMF Mission Chief"

New Delhi, May 24

The International Monetary Fund (IMF) is expected to conduct the next funding review for Pakistan in the second half of 2025.

According to an official IMF statement, it would maintain ongoing discussions with Pakistani authorities to reach an agreement on the 2026 fiscal year budget terms.

"The next mission associated with the next Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) reviews is expected in the second half of 2025," according to the IMF.

An IMF mission, led by Nathan Porter, has concluded its staff visit, which focused on recent economic developments, programme implementation, and the budget strategy for fiscal year (FY) 2026.

"We held constructive discussions with the authorities on their FY2026 budget proposals and broader economic policy, and reform agenda supported by the 2024 EFF and the 2025 RSF," said Porter.

The authorities reaffirmed their commitment to fiscal consolidation while safeguarding social and priority expenditures, aiming for a primary surplus of 1.6 per cent of GDP in FY2026, he added.

Discussions also covered ongoing energy sector reforms aimed at improving financial viability and reducing the high-cost structure of Pakistan's power sector, as well as other structural reforms which will help foster sustainable growth and promote a more level playing field for business and investment, the IMF statement added.

India has said it is "thankful" for the 11 additional conditions imposed by the IMF on Pakistan, while clarifying that it is not opposed to financial assistance meant for genuine developmental purposes.

At the same time, New Delhi has raised serious concerns over the timing of the recent bailout package, suggesting that the funds may have indirectly supported Pakistan's rising defence spending.

The bailout came when Pakistan was retaliating to India's Operation Sindoor -- a military strike on terror infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK).

India had asked it to reconsider the bailout as Pakistan allows terrorists to use its soil for launching state-sponsored attacks against Indian citizens.

The IMF has imposed 11 new conditions on Pakistan for the release of the next tranche of its bailout package, as the country continues to harbour terrorists.

- IANS

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Reader Comments

R
Rajesh K.
IMF should be more careful with Pakistan funding. Every rupee they get indirectly supports their military budget which is used against India. The 11 conditions are good but enforcement is key. Hope IMF monitors properly this time! 🇮🇳
P
Priya M.
While I understand India's concerns, we must remember ordinary Pakistanis suffer due to economic crises. The IMF conditions on energy reforms and fiscal discipline could actually help common people. But yes, terror funding must be stopped completely.
A
Amit S.
IMF keeps giving them money again and again...when will this stop? Pakistan's GDP growth is just 2% but defence budget increases every year. Clear where their priorities lie. India should put more diplomatic pressure to link IMF funds with action on terror.
S
Sunita R.
The timing is indeed suspicious right after Operation Sindoor. But at least IMF is imposing strict conditions this time. Pakistan needs to focus on its economy instead of funding terrorists. Hope the common citizens get some relief from these reforms 🤞
V
Vikram J.
As an economics student, I find Pakistan's situation fascinating. They're aiming for 1.6% primary surplus but with such low tax collection and high military spend, how? IMF conditions on energy sector reforms make sense - their power sector is in shambles.
N
Neha T.
While we have every right to be concerned, we must not celebrate others' economic troubles. Many Pakistani families struggle with inflation just like ours. The IMF should ensure funds help common people, not the military establishment. More transparency needed!

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