PTI
ISLAMABAD, May 18:
The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan for the release of the next tranche of its bailout programme and warned that escalating tensions with India could pose significant risks to the programme’s fiscal, external, and structural reform targets, The Express Tribune reported on Sunday.
According to the report, the IMF’s staff-level document—released on Saturday—highlighted the potential economic fallout of deteriorating relations between the two nuclear-armed neighbours. “Rising tensions between India and Pakistan, if sustained or worsening, could heighten risks to the fiscal, external and reform goals of the programme,” the report stated.
Among the newly imposed conditions are:
- Parliamentary approval of a Rs 17.6 trillion national budget
- An increase in the debt servicing surcharge on electricity bills
- Lifting restrictions on the import of used vehicles older than three years
Despite recent geopolitical developments, the IMF noted that the market response has so far remained moderate, with the stock market holding onto most of its recent gains and only a slight widening in bond spreads.
The warning underscores the IMF’s concerns about Pakistan’s economic vulnerabilities amid rising regional instability, urging Islamabad to stay on course with structural reforms and fiscal prudence.
